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The dry bulk cargo market closed with a positive sign even on the thread, compared to the previous week, with Panamaxes keeping the general index in the green and the rest of the sizes showing single-digit changes. More specifically, Capes fell by 1.29%, Kamsarmaxes +8.55%, Supramaxes +2.19% and Handies -0.16%, compared to the previous week. Thus, the BDI rose by 31 credits compared to the previous week and closed at 1997 credits on Friday, July 12.
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 central Australia-China route was held marginally above $10 per tonne, while the other indicators of the region also fell. Index levels on the Australia-China route (C5) closed Friday at $10.02/tn.
In the Atlantic Basin, and especially in the North, the lack of readily available vessels intensified the competition between charterers, with the result that rates rose mainly from Northern Continent to Asia. We also saw more activity in the south with Brazil showing more loads for August. Indexes on Friday for trips from Brazil to China reached $27.13/tn (for route C3), while rates from Continent to Asia closed at $63.25K/d (for route C9 ) and Transatlantic round trips at $28.71K/day (for route C8).
Regarding the Kamsarmaxes, in the Atlantic basin and especially in the north the week passed without much action. Only towards the end of the week did we see some improvements in the FFAs. In the south to buy it was quite different with quite a bit of movement as most of the July cargoes were booked while many early August cargoes were also discussed. For example, the rates for the trips from theNE. Coast of S. America (ECSA) to the Far East reached up to $15.5-17.5K/day (Asia delivery), Continent to Asia at $25.5-27.5K/day (Continent delivery) and Transatlantic round trips at $12.5-14.5K/day (Gibraltar delivery).
On the other hand, Asia picked up speed on Wednesday and Thursday where we saw a lot of cargo from Indonesia. There was also help from positive future forecasts and the rise of the South Atlantic. Indonesia-Far East round trip rates moved to $13.5-15.5K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market started the week at a slow pace. But as the days passed the picture improved as coal cargoes from Indonesia also increased. In addition, some closures at the beginning of the week also reduced the offered capacity helping the market. SMXs rates for travel between S. E. Asia and the Far East went to 15.5-17K/day. Further north, in the Far East the market was adversely affected by the lack of steel cargoes to the Atlantic. The North Pacific was more active but this was not enough to reverse the climate. SMXs rates for North Pacific (NOPAC) round trips moved to $11.5-13K/day, W. C. India round trips to $10-11.5K/day and Atlantic Basin (BH) round trips to $ 11.5-13K/day.

In the Middle East Gulf and the West C. India the market was calm and as a result rates fell. However, it is worth noting that there has been increased interest from charterers to take vessels in season. SMXs rates for Far East trips ranged between $15-16.5K/day (from Middle’s East Gulf (MEG) – West C. India (WCI)), for short-haul trips between Middle’s East Gulf – W. India at $12.5-14 K/day and trips to the Atlantic Basin $8.5-10 K/day.
The Atlantic Basin and especially the US Gulf had a strong start with a limited supply of vessels, which strengthened the ship owners’ side. However, the continuation of the week was not comparable, as a result of which the increase in rates was limited. SMXs rates for transatlantic trips reached up to $21.5-23K/day and to Asia $25-26.5K/day. The ECSA region started the week balanced thanks to new cargoes to Asia. However, at the end of the week a concentration of capacity was observed. SMXs rates for trips to the S.E. Asia-China moved to $25-26.5K/day and for Transatlantic trips (Mediterranean/Continent) to $18.5-20K/day.
Continent was under pressure from an oversupply of vessels. However, the continued flow of scrap cargoes improved market sentiment. SMX rates for round-trip local trips moved to $14.5-16K/day, for trips with SCRAP cargoes to the Mediterranean at $14-15.5K/day and to Asia at $20-21.5K/ day. The Mediterranean showed improved demand thanks to an increased volume of cement cargoes. In addition, many shipowners preferred to move further west in search of better rates. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $21-22.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $9.5-11K/day and into the Mediterranean at $ 13.5-15K/day (outside war zones).
In the Handies market, in Continent the market continued the downward trend of the previous period. The supply of vessels was kept at the same levels but the lack of new cargoes led the market to lower levels. Rates for the largest vessels in the class, for round trips reached up to $10-11.5K/day, to the Mediterranean with scrap cargoes at $10.5-12K/day and for Transatlantic trips at $8.5-10K /day.
The Mediterranean was active but this was not reflected in the rates. Several operators preferred to cover their cargoes with their own vessels. Larger vessels’ rates (over 36K tonnes DWT) for intra-Med trips moved to $11-12.5K/day (delivery at Canakkale), to Continent at $10.5-12K/day (delivery to Canakkale), to the other side of the Atlantic Basin at $9-10.5K/day (delivery to Canakkale) and to Asia at $14-15.5K/day.
On the other side of the Atlantic Basin, in the American Gulf the market was strengthened with several new cargoes which also absorbed a large part of the available vessels. There were also quite a few cargoes of grain to the west coast. Due to the bad image of Continent many ship owners are considering moving to the region. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic ranged between $15-16.5K/day and to Asia at $20.5-22K/day.
The East Coast of South America (ECSA) region showed upward trends mainly due to the mobility seen on the part of charterers boosting demand. 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 $19.5-21K/day.
In Asia and particularly in the south the market lost ground as the balance between supply and demand shifted in favor of charterers. Only some cargoes from Indonesia tried unsuccessfully to change the picture of the market. In the north we saw increases driving cargo to the Atlantic, while several shipowners appeared reluctant to move there. In the Gulf of the Middle East and W. C. India everything moved slowly due to the problems caused by the monsoons and cargo demand was also limited. Far East and NOPAC round trip charterers on larger vessels closed at $13-14.5K/day, from S. E. Asia to China at $15.5-17K/day and from the W. C. India to China at $11.5-13K/day.