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The dry bulk cargo market was up, compared to two weeks ago, with Capes posting double-digit gains and Panamaxes posting double-digit losses. The smaller sizes were more or less kept at the same levels. More specifically, Capes rose by 16.98%, Kamsarmaxes -11.57%, Supramaxes +1.3% and Handies -0.28%, compared to the week before August 15. Thus, the BDI rose by 92 credits, compared to the week before August 15, and closed at 1762 credits on Friday, August 23.
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 participation of major miners and increased coal demand from Australia drove rates on the core c5 route to higher levels. Index levels on the Australia-China route (C5) closed Friday at $11.01/tn.
In the Atlantic the week started calmly in the south but improved in the middle with several closures from southern Brazil and western Africa to Asia and the other side of the Atlantic Basin. The north progressed in the same positive climate but not with such large increases as in the south. Indexes on Friday for trips from Brazil to China reached up to $26.28/tn (for route C3), while rates from Continent to Asia closed at $49.41K/d (for route C9 ) and Transatlantic round trips at $17.11K/day (for route C8).
Regarding Kamsarmaxes, in the Atlantic basin and particularly in the north, the market showed downward trends under the pressure of high volume of vessels and low cargoes. However, in the south too the picture was similar with rates decreasing day by day. For example, the rates for the journeys from the E. Coast of S. America (ECSA) to the Far East reached up to $15.5-17.5K/day (Asia delivery), Continent to Asia at $22.5-24.5K/day (Continent delivery) and Transatlantic round trips at $9-11K/day (Gibraltar delivery).
On the other hand, mixed trends were observed in Asia. On the one hand, Australia was calm, while on the other hand, the North Pacific continued at the same pace and Indonesia showed an increased cargo flow. Indonesia-Far East round trip rates moved to $12-14K/day (Far East delivery).
For Supramaxes-Ultramaxes, in Southeast Asia the market continued without particular surprises as coal cargoes were limited from Indonesia while Australia was also quiet. 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 lost ground due to the large number of open vessels. In addition, the North Pacific and China did not offer attractive options for shipowners. SMXs rates for North Pacific (NOPAC) round trips moved to $12-13.5K/day, W. C. India round trips to $12-13.5K/day and Atlantic Basin (BH) round trips to $ 12.5-14K/day.
In the Gulf of the Middle East and West C. India the market showed increased mobility with many new cargoes, but the long list of available vessels did not allow for a rise in rates. It should be noted that the smaller vessels showed a decline since the volume of vessels available was large. SMXs rates for Far East trips ranged between 3.5-15K/day (from Middle East’s Gulf (MEG) – West C. Indies (WCI)), for short-haul trips between Middle’s East Gulf – West C. India at $12.5-14 K/day and trips to the Atlantic at $ 8-9.5 K/day.
In the Atlantic Basin and especially the American Gulf moved at two speeds. On the one hand most shipowners competed for business to the other side of the Atlantic Basin while trips to Asia commanded a premium. SMXs rates for Transatlantic trips reached up to $17.5-19K/day and to Asia $23.5-25K/day. The ECSA region moved at slow speeds despite the fact that supplied capacity was reduced. SMXs rates for trips to the S. E. Asia-China moved to $24.5-26K/day and for Transatlantic trips (Mediterranean/Continent) to $19.5-21K/day.
Continent showed a decline for August cargoes and a better picture for September cargoes. However, more vessels are expected at the beginning of next month, halting the upward trend in rates. SMX rates for round-trip local trips moved to $12.5-14K/day, for trips with SCRAP cargoes to the Mediterranean at $13.5-15K/day and to Asia at $19.5-21K/ day. The Mediterranean was pressured by reduced demand for grain cargoes. Indicatively, it is reported that an SMX for a trip from the Mediterranean to Asia closed at $19-20.5K/day (Canakkale delivery), to the other side of the Atlantic Basin at $8.5-10K/day and within the Mediterranean at $ 12-13.5K/day (outside war zones).
In the Handies market, in Continent the market lost ground due to reduced demand for grain and scrap while the supply of vessels remained stable. 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 day. The Mediterranean followed the downward trend of the Black Sea as most involved are in a holiday mood. Larger vessel rates (over 36K tons DWT) for intra-Med trips moved to $8.5-10K/day (delivery at Canakkale), to Continent at $8-9.5K/day (delivery at Canakkale) , to the other side of the Atlantic Basin at $8-9.5K/day (Canakkale delivery) and to Asia at $13-14.5K/day.
On the other side of the Atlantic Basin, in the US Gulf the market showed improvements as the supply of vessels was kept at the same levels while new cargoes were introduced which stimulated the demand. Indicatively, the rates of the largest vessels in the class for trips to the other side of the Atlantic Basin ranged between 5.5-17K/day and to Asia at $20.5-22K/day.
The East Coast of South America (ECSA) region declined due to an increase in available vessels while demand remained flat, thus intensifying competition among shipowners. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $17.5-19K/day and to Asia at $18.5-20K/day.
In Asia the week was quiet in both the north and the south with only some cargoes from Indonesia and Australia restraining the drop in rates. Further west, in the Middle East Gulf and Wday.C. India activity was subdued with many vessels seeking cargo for various destinations. Far East and NOPAC round trip charterers on larger vessels closed at $13-14.5K/day, from S. E. Asia to China at $11.5-13K/day and from the West C. India to China at $11-12.5K/day.

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