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The dry bulk cargo market progressed with a small increase as all the largest sizes showed an increase. Panamaxes saw the biggest increase, followed by Capes and Supramaxes, while Handies lost ground compared to the previous week. In detail, Capes are up 8.7%, Kamsarmaxes +11.3%, Supramaxes +2.7% and Handies -3.4%, compared to the previous week. Thus, the BDI rose by 81 credits (compared to the previous week) and closed at 1090 credits on Friday, July 14.
Let’ssee, in more detail, how the dry bulk cargo market by vessel’s size moved last week, starting with CAPEs. In Asia the week got off to a positive start with the three main charterers in the market looking for vessel’s. However the rest of the week was no match once the initials were covered as the flow of loads stopped. However, at the end of the week there was a good volume of closings. Benchmarks on the Australia-China route (C5) closed Friday at $7.815/tn.
In the AAtlantic Basin and especially in the South, there was pressure on the rates due to the large number of vessels moving to the Brazilian area. But improving activity in the middle of the week limited the losses. In the North Atlantic the picture was clearly better with more action and several bookings, while the available vessels were also limited. Indexes on Friday for trips from Brazil to China reached up to $19.98/tn (for route C3), while rates from Continent to Asia closed at $34.13K/d (for route C9 ) and Transatlantic round trips at $13.84K/day (for route C8).
Regarding Kamsarmaxes, in the North Atlantic the market picked up during the week due to a good flow of cargoes and a reduced number of vessels available. Shipowners could find cargo from either the North Coast of South America or the East Coast of the United States. In the South the picture was similar with several loads for the first half of August. For example, the rates for the trips from the E. Coast of S. Americas (ECSA) to the Far East reached up to $12-14K/day (Asia delivery), Continent to Asia at $16.5-18.5K/day (Continent delivery) and transatlantic round trips at $7-9 K/day (Gibraltar delivery).
On the other hand, in Asia the market started strongly but in the last few days most charterers took a wait-and-see attitude. At the same time, Australia and the North Pacific did not help the market as demand was limited. So, most shipowners preferred to move to the Atlantic. Indonesia-Far East round trip rates moved to $7-9K/day (Far East delivery).
For Supramaxes-Ultramaxes Southeast Asia appeared to maintain its momentum as Indonesia showed quite a bit of movement. SMXs rates for trips between S. E. Asia and the Far East stayed at 10-11.5K/day. Further north, in the Far East the market eased as both China and the North Pacific were calm with limited cargo flow. SMXs round trip NOPAC rates ranged between $6.5-8K/day, W. C. India round trips $6-7.5K/day and Atlantic (BH) round trips $5-6; 5K/day.
In the Middle East Gulf and West C. India the market continued to move downwards, with rates moving below 10K per day for all routes. The list of vessels remains long while the demand is not enough to change the general mood. SMXs rates for Far East trips ranged between $7.5-9K/day (from Middle East’s Gulf (MEG)–West C. India (WCI)), short-haul between Middle East Gulf–West C. India at $7-8.5K /day and trips to the Atlantic Basin at $5-6.5K/day.
In the Atlantic Basin and especially the American Gulf, there was a satisfactory volume of cargo, but the increased number of vessels of the previous weeks did not allow an increase in the rates. SMX rates for Transatlantic trips remained at $9-10.5K/day and to Asia at $14-15.5K/day. The ECSA region moved in low numbers. Demand was so limited that it led Supramaxes to compete with Handies in smaller batches. This has the effect of somewhat reducing the capacity offered. The rates of SMXs for trips to N.A. Asia-China moved to $14-15.5K/day and for Transatlantic trips (Mediterranean/Continent) to $9.5-11K/day.
In Continent the market continued to decline, despite the fact that we saw some new cargoes. The charterers, seeing the broader climate, insisted on their ideas, while several shipowners accepted lower numbers in order to close their ships. SMXs round-trip rates moved to $8-9.5K/day, for SCRAP cargo trips to the Mediterranean at $8-9.5K/day and to Asia at $11-12.5K/day day. The Mediterranean moved at low speeds, affected by the trend of the previous weeks. However we did see some cargoes of grain from the black sea. For example it is reported that an SMX for a trip from the Mediterranean to Asia closed at $10.5-12K/day (Canakkale delivery), to the other side of the Atlantic Basin at $6-7.5K/day and into the Mediterranean at $ 7-8.5 K/day (outside war zones).
In the Handies market, in Continent the market declined further as new cargoes were absent and mobility was also limited. Cargoes from Russia were also not an attractive alternative for shipowners. Rates for the largest vessels in the class, for round trips fell to $6.5-8K/day, to the Mediterranean with Scrap cargoes to $5.5-7K/day and for Transatlantic trips to $5-6.5K /day.
The Mediterranean continued to rise as it was bolstered by several grain cargoes. Larger vessel rates (above 36K tonnes DWT) for intra-Med trips moved to $7-8.5K/day (delivery at Canakkale), to Continent at $7-8.5K/day (delivery at Canakkale) , to the other side of the Atlantic at $6.5-8K/day (Canakkale delivery) and to Asia at $9.5-11K/day.
On the other side of the Atlantic Basin in the US Gulf there were quite a few cargoes at the beginning of the week, but they were covered very quickly. So the number of vessels may have decreased but there is still oversupply in the area and rates are kept at low levels. Indicatively, rates of the largest vessels in the class for trips to the other side of the Atlantic ranged from $6-7.5K/day and to Asia at $8.5-10K/day.
In the East Coast region of South America (ECSA) the market started the week with plenty of action and many closes. However, the continuation of the week was not commensurate, as the flow of cargoes did not renew and the capacity offered increased. Thus, the charterers of larger vessels from the ECSA area for Transatlantic trips (Continent – Mediterranean) moved to $10-11.5K/day and to Asia at $12.5-14K/day.
In Asia the market continued without any particular surprises. Both the market and the south were calm and only some cargoes to the Atlantic showed interest, but not enough to change the general picture. In the Gulf of the Middle East and the West C. India the market continued without particular changes with the supply of vessels increasing and the weather conditions creating problems in the ports. Far East and NOPAC round trips on larger vessels closed at $7-8.5K/day, from N.A. Asia to China at $7.5-9K/day and from the West C. India to China at $6.5-8K/day.