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Market Adjustments Across Dry Bulk Cargo Segments

Iakovos (Jack) Archontakis
Commercial Director TMC MARITIME CO.

Dr. Fotios–Evangelos Karlis
Maritime Executive and Consultant

The dry bulk cargo market edged down slightly due to the losses in the Capesize segment, while smaller vessel sizes also slowed down despite showing week-on-week gains.

Specifically, Capes dropped by 16.44%, Kamsarmaxes increased by 2.02%, Ultramaxes (63k) by 7.18%, and Handies decreased by 0.49% compared to the previous week. As a result, the BDI fell by 85 credits week-on-week, closing at 1,436 credits on Friday, July 4th.
Let’s take a more detailed look at how the dry bulk cargo market performed by vessel size over the past week, starting with the Capes.In Asia, the market gradually began to strengthen. The three major charterers were active, improving the volume of concluded fixtures, while available tonnage was limited. As a result, the main Australia-China route gained $0.50/ton over the week. The C5 index (Australia-China) closed on Friday at $7.44/ton.
In the Atlantic Basin, activity and rates increased both in the North and South. Brazil had a slow start to the week but picked up momentum by the end. In the North Atlantic, improvements were observed on all routes. On Friday, the C3 (Brazil to China) index reached $18.67/ton, while the C9 (Continent to Asia) route closed at $38,290/day, and the C8 (Transatlantic round trip) at \$17,710/day.
In the Atlantic basin, we saw mixed trends. Latin America showed an upward trajectory throughout the week, whereas the northern part performed worse. However, rates varied depending on the vessel's delivery location. Notably, trips to Asia saw better figures than other routes. Indicatively, rates for trips from the East Coast of South America (ECSA) to the Far East were at $13–15K/day (delivery in Asia), from Continent to Asia at $19.5–21.5K/day (delivery in Continent ), and transatlantic round trips at \14–16K/day (delivery at Gibraltar).
In Asia, there was strong activity with steady demand from major loading regions, and rates remained more or less stable. Rates for round trips in the Indonesia–Far East region were around $11–13K/day (delivery in the Far East).
Southeast Asia showed positive momentum, driven primarily by coal cargoes from Indonesia. UMX rates for trips between Southeast Asia and the Far East reached $11.5–13K/day. Further north, in the Far East, the market was calmer, with interest focused mainly on cargoes heading to the Atlantic Basin and the West Coast. UMX rates for North Pacific (NOPAC) round trips stood at \$11–12.5K/day, for trips to W. C. India at $12–13.5K/day, and for backhaul trips to the Atlantic Basin (BH) at \$12.5–14K/day.

In the Middle East Gulf and West C. India, the market was characterized by several decent fixtures, improving the overall picture. Additionally, adverse weather conditions helped keep vessel supply low. UMX rates for trips to the Far East ranged between $12–13.5K/day (from MEG–WC India), for short local trips between MEG–WC India at $14–15.5K/day, and for westbound trips to the Atlantic Basin at $11–12.5K/day.
In the Atlantic Basin, particularly the US Gulf, the market moved at two speeds. On one hand, rates for transatlantic trips rose, while on the other, those heading to Asia remained steady. UMX rates for transatlantic trips reached $23–24.5K/day, and to Asia at $20–21.5K/day. The ECSA region continued its upward trend in both the north and south, mainly due to tightening tonnage supply. UMX rates for trips to Southeast Asia–China were at $21.5–23K/day and for transatlantic trips (Mediterranean/Continent) at $23–24.5K/day.
Continent showed improvements thanks to new cargo flows, primarily fertilizers, scrap, and petcoke destined for Asia. At the same time, vessel availability remained limited. UMX rates for local trips were around $11–12.5K/day, for scrap cargoes to the Mediterranean at $16–17.5K/day, and to Asia at $15–16.5K/day. In the Mediterranean, the western side showed strength with new cargoes and support from Latin America. Conversely, the Eastern Mediterranean remained sluggish. For instance, UMX trips from the Mediterranean to Asia were closed at $12.5–14K/day (delivery Canakkale), to the other side of the Atlantic Basin at $8–9.5K/day, and within the Mediterranean at $10–11.5K/day (excluding war zones).
In Continent , the market was quiet, as attention shifted to the events in Athens. The lack of cargoes led many shipowners to shift toward the other side of the Atlantic Basin. Rates for the larger vessels in the segment for round trips reached $6.5–8K/day, to the Mediterranean with scrap cargoes at $7.5–9K/day, and for transatlantic trips at $6–7.5K/day.
The Mediterranean showed signs of recovery as cargo flows from the Black Sea improved. Many vessels from the Western Mediterranean also relocated to the South Atlantic. Rates for the larger vessels (over 36K DWT) for intra-Med trips stood at $8.5–10K/day (delivery Canakkale), to Continent at $8.5–10K/day (delivery Canakkale), to the other side of the Atlantic Basin at $6.5–8K/day (delivery Canakkale), and to Asia at $11.5–13K/day.
Across the Atlantic Basin, in the US Gulf, the market came under pressure from increased tonnage, as vessels began arriving from the Mediterranean and Continent. Nevertheless, the healthy flow of cargo helped prevent a steep drop in rates. Indicatively, rates for the larger vessels for transatlantic trips ranged from $15–16.5K/day, and to Asia at $17–18.5K/day.
The East Coast of South America (ECSA) was particularly active, with many fresh cargoes for the first half of July. Most interest was focused on trips to Asia. As a result, rates for the larger vessels from ECSA for transatlantic trips (Continent –Mediterranean) ranged between $17.5–19K/day and to Asia at \$17–18.5K/day.
In Asia, the market maintained its momentum both in the North and South, with strong cargo flows from Australia and premiums requested by shipowners for trips from the Far East to the Middle East Gulf. Further west, in the Middle East Gulf and WC India, there was an increase in activity, as more shipowners were willing to take cargoes from the Gulf. Rates for the larger vessels for round trips in the Far East and NOPAC closed at $9.5–11K/day, from Southeast Asia to China at $11.5–13K/day, and from West C. India to China at \$8–9.5K/day.

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