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The dry bulk cargo market continued its upward trend, thanks to Capes as smaller sizes came under pressure. More specifically, Capes rose by 9.59%, Kamsarmaxes -8.74%, Supramaxes -0.93% and Handies +1.33%, compared to the previous week. Thus, the BDI rose by only 53 credits compared to the previous week and closed at 2050 credits on Friday, June 28.
Let’s see, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia, the week started with plenty of traffic and rates increases on most routes. However, towards the end of the week the rates slowed and the increase was limited. Index levels on the Australia-China route (C5) closed on Friday at $11.17/tn.
In the Atlantic Basin and particularly in Brazil the increased demand for July cargoes absorbed much of the moving vessels to the region. Midweek there was a large number of bookings thus raising rates levels. Indexes on Friday for trips from Brazil to China reached up to $29.2/tn (for route C3), while rates from Continent to Asia closed at $57.43K/d (for route C9 ) and Transatlantic round trips at $26.14K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and especially in the North Atlantic the lack of new cargoes led to a decrease in activity and only the small number of vessels available somewhat restrained the decline. In Brazil the picture was similar with a gradual de-escalation of rates. For example, the rates for the trips from the E. Coast of S. America (ECSA) to the Far East reached up to $16-18K/day (Asia delivery), Continent to Asia at $24.5-26.5K/day (Continent delivery) and transatlantic round trips to $11.5-13.5K/day (Gibraltar delivery).
On the other hand, in Asia the market had a slow start and end of the week and only in the middle some interest. But this should be enough to help the market where the losses reached up to 2K. Indonesia-Far East round trip rates ranged between $11.5-13.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week at a slow pace but picked up speed day by day as more coal cargoes from Indonesia appeared. SMXs rates for travel between S. E. Asia and the Far East went to 17.5-19K/day. Further north, in the Far East the market advanced positively led by steel shipments from China. However, little help came from the North Pacific. SMXs rates for North Pacific (NOPAC) round trips moved to $12-13.5K/day, W. C. India round trips to $12.5-14K/day and Atlantic (BH) round trips to $ 13.5-15K/day.
In the Middle East Gulf and West C. India the week progressed calmly. Many vessels’ owners, seeing that the picture is not expected to change soon, are considering moving to southern Africa. SMX rates for Far East trips ranged between $15-16.5K/day (from Middle East’s Gulf (AG) – West C. India (WCI)), for short-haul trips between Middle East’s Gulf – West C. India at $13-14.5 K/day and trips to the Atlantic Basin at $ 6.5-8 K/day.
In the Atlantic Basin and especially the US Gulf, it was calm despite the fact that there were many closures. It appeared that strong rates from the West Bank helped the market contain its decline. SMXs rates for Transatlantic trips reached up to $17.5-19K/day and to Asia $22.5-24K/day. The ECSA region showed signs of fatigue as vessel supply remained strong while a lack of new cargo mainly to Asia was evident. SMXs rates for trips to the S. E. Asia-China moved to $25-26.5K/day and for Transatlantic trips (Mediterranean/Continent) to $19.5-21K/day.
Continent declined as the flow of vessels was stable while the volume of cargo was very limited. SMX rates for round-trip local trips moved to $11-12.5K/day, for trips with SCRAP cargoes to the Mediterranean at $13-14.5K/day and to Asia at $19-20.5K/ day. The Mediterranean was inactive. The number of vessels available was limited, however, demand moved to low levels, driving down rates. A positive point is the fact that more and more grains are appearing. For example, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21.5-23K/day (Canakkale delivery), to the other side of the Atlantic Basin $10-11.5K/day and into the Mediterranean at $ 11.5-13K/day (outside war zones).
In the Handies market, in Continent the market was relatively calm. There were some loads that were not covered while the list of loads remained constant. Rates for the largest vessels in the class, for round trips reached up to $10.5-12K/day, to the Mediterranean with scrap cargoes at $11-12.5K/day and for transatlantic trips at $9.5-11K /day.
The Mediterranean started the week strongly with plenty of mobility and an increase in rates. It is worth noting that several ship-owners from the Western Mediterranean considered moving to the Eastern Mediterranean as they could find cargo more easily. Larger vessel’s rates (over 36K tonnes DWT) for intra-Med trips moved to $12-13.5K/day (delivery at Canakkale), to Continent at $11.5-13K/day (delivery to Canakkale), to the other side of the Atlantic Basin $9-10.5K/day (delivery to Canakkale) and to Asia at $15-16.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market came under pressure as the number of cargoes increased. However, ship-owners managed to raise rates levels as several vessels and cargoes were grounded at the start of the week. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 5-16.5K/day and to Asia at $20.5-22K/day.
The East Coast of South America (ECSA) region was shown to stabilize mainly in the south. A regulatory factor is the draft in the Argentine river, since if it recedes further, it will help the bigger vessels. Thus, the charters of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $16.5-18K/day and to Asia at $17.5-19K/day.
In Asia the market was kept at the same levels. In Southeast Asia the market started the week without much action however cargoes from Australia showed some interest. In the north there was more action with increased demand on all routes. Further west C. India and the Gulf moved up with a steady flow of cargo. Far East and NOPAC round trip charters on larger vessels closed at $12-13.5K/day, from S.E. Asia to China at $17.5-19K/day and from the West C. India to China at $11.5-13K/day.

Disclaimer
This report and the information contained herein it is for general information only and does not constitute an investment advice