The dry bulk cargo market declined with losses across all sizes. The largest double-digit losses were recorded in the largest sizes, Capes and Panamaxes, while the smaller sizes were marginal compared to the previous week. Specifically, Capes fell by 13.92%, Kamsarmaxes -10.55%, Ultramaxes (63) -1.93% and Handies -0.58%, compared to the previous week. Thus, the BDI fell by 239 credits compared to the previous week and closed at 2018 credits on Friday, August 1.
Capes: Mixed signals in Pacific and Atlantic
In Asia, weather conditions caused various problems in central China. However, the main route from Western Australia to China improved as the week went on. The index levels on the Australia–China route (C5) closed on Friday at $10.67/tn.
In the Atlantic Basin and particularly in the north, losses were recorded for both Asia and round Transatlantic trips. In the south, there was more stability, with China–Asia trips via Brazil remaining at 24K/day. Friday’s indexes reached up to $24.19/tn for Brazil–China trips (for the C3 route), while Continent–Asia rates closed at $49.63K/day (for the C9 route), and Transatlantic round trips at $31.21K/day (for the C8 route).
Kamsarmax: Demand drops across both hemispheres
Losses were recorded in the Atlantic Basin with a small volume of bookings and increasing pressure on shipowners, both in the north and in the south. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East reached up to $13.5–15.5K/day (delivery Asia), from Continent to Asia at $23–25K/day (delivery in Continent), and round Transatlantic trips at $17–19K/day (delivery in Gibraltar).
On the other hand, in Asia, the downward trends continued as both the North Pacific and Eastern Australia did not offer particular opportunities to shipowners, who were forced to accept lower numbers in order to book their vessels. Roundtrip rates for Indonesia–Far East trades were at $12.5–14.5K/day (Far East delivery).
Supramax–Ultramax: Stable South Asia, quiet Middle East
Southeast Asia continued at the same pace as last week, with a steady flow of coal and clinker cargoes. UMX rates for trades between SE Asia and the Far East went to $13.5–15K/day.
Further north, in the Far East, the market saw a slight increase thanks to return trips with steel cargoes. Interest in season charters also increased. UMXs for round trips in the North Pacific (NOPAC) were $13–14.5K/day, for trips to W. C. India $14.5–16K/day, and for return trips to the Atlantic Basin (BH) $13.5–15K/day.
In the Middle East Gulf and West C. India, the market proceeded without major fluctuations. Activity was low and there was a balance between supply and demand. UMXs for trips to the Far East were $12–13.5K/day (from MEG–WCI), for short trips between MEG–WCI $14.5–16K/day, and for trips to the Atlantic Basin $10–11.5K/day.
Ultramax: Mixed trends across the Atlantic
In the Atlantic Basin and especially the American Gulf, the week started slowly; however, demand increased during the week for both transatlantic and Asia trips. UMX rates for transatlantic trips reached up to $23–24.5K/day and to Asia at $25–26.5K/day.
The ECSA region showed an upward trend thanks to the steady flow of cargo in the north. On the contrary, in the south, demand was limited and supplied capacity increased. UMX rates for trips to SE Asia–China moved at $23.5–25K/day and for transatlantic trips (Mediterranean/Continent) at $21.5–23K/day.
Continent started the week with a lack of cargo and limited activity. Although the supply capacity was reduced, it still pushed rates lower. UMX rates for round-local trips were at $12–13.5K/day, for SCRAP trips to the Mediterranean at $15–16.5K/day, and to Asia at $17.5–19K/day.
The Mediterranean moved at the same levels as the previous week without any particular differences. There is also a shortage of trips that can pass the Gulf of Aden, in contrast to the other routes. Indicatively, it is reported that a UMX for a trip from the Mediterranean to Asia closed at $17–18.5K/day (delivery Çanakkale), to the other side of the Atlantic Basin at $11.5–13K/day, and within the Mediterranean at $13–14.5K/day (excluding war zones).
Handysize: Steady in Americas, uneven elsewhere
The market in Continent declined since there were no new cargoes. Thus, many shipowners preferred to move to the other side of the Atlantic Basin. A positive point was that, in this way, the capacity was reduced. The rates for the largest vessels in the category, for round trips, reached up to $9–10.5K/day, to the Mediterranean with scrap cargo at $8–9.5K/day, and for Transatlantic trips at $7–8.5K/day.
The Mediterranean improved as the week drew to a close due to a shortage of vessels on key routes. Rates for larger vessels (over 36K DWT) for intra-Mediterranean trips were at $8.5–10K/day (delivery at Çanakkale), to Continent at $8.5–10K/day (delivery at Çanakkale), to the other side of the Atlantic Basin at $7.5–9K/day (delivery at Çanakkale), and to Asia at $12.5–14K/day.
On the other side of the Atlantic Basin, in the American Gulf, the market remained in balance, as capacity may have increased but there was enough cargo to keep rates at the same levels. Indicatively, the rates of the largest vessels in the category for trips to the other side of the Atlantic Basin ranged at $13.5–15K/day and to Asia at $15.5–17K/day.
The East Coast of South America (ECSA) region moved upwards, gaining day by day despite the slow start of the week. From mid-week onwards, there was more mobility. Thus, the rates of the largest vessels from the ECSA region for Transatlantic trips (Continent–Mediterranean) moved at $16–17.5K/day and to Asia at $16.5–18K/day.
In Asia, and especially in the north, the market maintained its momentum while remaining in balance. In the south, a decrease in activity was observed, and readily available vessels came under pressure. Further west, in the Middle East Gulf and W. C. India, the week started with a recession. However, as the week progressed, we saw some satisfactory closings, but they were isolated and did not characterize the entire market. The rates of the largest vessels in the category for round trips to the Far East and NOPAC closed at $11–12.5K/day, from SE Asia to China at $12.5–14K/day, and from West C. India to China at $9–10.5K/day.
Disclaimer
This report and the information contained herein is for general information only and does not constitute investment advice.