18-December-2024
The Baltic Exchange’s dry bulk sea freight index, which measures rates for ships transporting dry bulk commodities, declined on Tuesday as rates decreased across all bulk carrier segments. The Baltic Dry Index (BDI), which includes rates for capesize, panamax, and supramax bulk carriers, dropped 18 points to 1,053 points. The Baltic Capesize Index (BCI) lost 32 points, settling at 1,308 points. Average daily earnings for capesize bulk carriers, which typically haul 150,000-ton cargoes like iron ore and coal, fell by $268 to $10,848. Iron ore futures (FFA) fluctuated within a narrow range on Tuesday, as the shipping market balanced slower shipments against subdued demand and high portside inventories in China, the top consumer. The Baltic Panamax Index (BPI) decreased by 18 points to 959 points, marking its lowest level since July 2023. Average daily earnings for panamax bulk carriers, which generally transport 60,000-70,000 tons of coal or grain, dropped $169 to $8,627. Meanwhile, the Baltic Supramax Index (BSI), covering smaller bulk carriers, declined by 6 points to 949 points, reaching its lowest point since August 2023.
17-December-2024
The Baltic Exchange’s dry bulk sea freight index, which monitors rates for ships transporting dry bulk commodities, experienced an increase on Monday, buoyed by significant gains in the capesize bulk carrier segment. The Baltic Dry Index (BDI), which incorporates rates for capesize, panamax, and supramax shipping vessels, climbed 20 points to 1,071 points. The Baltic Capesize Index (BCI) rose by 77 points to 1,340 points. Average Daily Earnings for capesize bulk carriers, typically hauling 150,000-ton cargoes such as iron ore and coal, surged by $642 to $11,116. Iron ore futures saw a rebound on Monday, as renewed optimism for monetary easing in China, the top consumer, overcame concerns about weak near-term demand and discouraging property data that had previously driven prices to their lowest levels a week earlier. The Baltic Panamax Index (BPI) dropped 18 points to 977 points, marking its lowest level since July 2023. Average Daily Earnings for panamax bulk carriers, which generally transport 60,000-70,000 tons of coal or grain cargo, decreased by $159 to $8,796. Meanwhile, the Baltic Supramax Index (BSI) declined by 4 points to 955 points, reaching its lowest point since August 2023.
16-December-2024
Capesize Bulk Carrier Market
The Capesize Bulk Carrier Market experienced a challenging week, with continuous declines and limited support across both the Pacific and Atlantic basins. The Baltic Capesize Index (BCI) 5TC opened at $12,702, only to experience a steady drop, closing at $10,474 by Friday—reflecting a significant weekly loss of over $2,200. In the Pacific, despite an initial surge in cargo volumes, the momentum could not be sustained due to an increasing list of available tonnage and subdued demand. The lack of substantial activity from major miners further depressed earnings. The Baltic Capesize Index (BCI) C5 index declined from $742 to $6,990 by week’s end. In the Atlantic, while there was a slight increase in cargo availability for January 2025 from South Brazil and West Africa to China markets, Brazilian iron ore exports slowed, and an excess of bulk carriers kept rates depressed. The Baltic Capesize Index (BCI) C3 index dropped from $17.56 to $16.230 by the end of the week. Fronthaul activities from East Coast Canada further contributed to the negative sentiment, with significantly discounted fixtures being reported.
Panamax Bulk Carrier Market
The week started stable for rates in the Atlantic, continuing from the previous week. Trans-Atlantic demand remained the primary driver, though fronthaul interest was consistently low throughout the week. An 81K DWT Panamax Bulk Carrier delivery Skaw secured $10,000 for a trip via US Gulf and Egypt, redelivery Gibraltar earlier in the week; however, this rate adjusted closer to $9,000 as the week concluded, highlighting a gradual decline. Asia found it difficult to gain traction this week, with increasing tonnage count and a thin demand book pushing rates lower; a rate of $7,000 was rumored for an 81K DWT Panamax Bulk Carrier delivery China for a NoPac (North Pacific) round. Despite the challenging conditions in Asia, there was significant discussion about periods, and despite lower levels than previously, several deals were concluded, including an 81K DWT Panamax Bulk Carrier delivery China fixed basis 9/12 months at $7300 for the first 40 days and thereafter at $11,750.
Ultramax/Supramax Bulk Carrier Market
As the widespread festive period approached, the Atlantic market remained somewhat stagnant throughout the week. The North Atlantic continued its subdued trend with a 64K DWT Ultramax Bulk Carrier fixing delivery US Gulf for a petcoke run to India at $23,000. Additionally, a 63K DWT Ultramax Bulk Carrier was fixed for a trip from the US Gulf to North Brazil at $18,500. The Mediterranean-Continent region struggled with limited fresh inquiries. A 58K DWT Supramax Bulk Carrier was fixed delivery Hamburg for a trip to South Brazil at $9,250 with an option for North Brazil at $9,700 for the first 45 days and thereafter at $14,000. The South Atlantic saw limited activity and remained finely balanced. Losses continued in the Asian market as sentiment stayed low, with a 63K DWT Ultramax Bulk Carrier open CJK fixed for a NoPac (North Pacific) round at $12,000. Further south, a 55K DWT Supramax Bulk Carrier was fixed delivery Singapore for a trip via Indonesia redelivery China in the low $10,000s. Demand from the Indian Ocean was fairly good, although rates remained subdued. A 57K DWT Supramax Bulk Carrier fixed delivery Richards Bay Coal Terminal (RBCL) for a trip to Pakistan at $15,000 plus $150,000 BB (Ballast Bonus). Period activity lacked much interest with a 58K DWT Supramax Bulk Carrier open Mumbai fixing 3/5 months trading in the low $10,000s.
Handysize Bulk Carrier Market
The market experienced limited visible activity across both basins this week. In the Continent and Mediterranean regions, the Continent appeared softer due to a lack of fresh scrap orders and Russian demand, while the Mediterranean side was relatively stable. A 37K DWT Handysize Bulk Carrier was fixed delivery Brunsbuttel for a trip via Poland to Conakry at $11,300. In the U.S. Gulf, the market remains very slow, with minimal fixing activity recorded, and charterers bidding lower than previously agreed levels. A 38K DWT Handysize Bulk Carrier was fixed for delivery U.S. Gulf to redelivery Morocco at $12,000. Meanwhile, the South Atlantic appeared more balanced with market sentiment remaining generally stable. A 34K DWT Handysize Bulk Carrier was heard fixed delivery Recalada redelivery West Africa at $16,000. In Asia, the tonnage count increased throughout the week, leading to downward pressure on rates and some shipbrokers anticipating further market softening. A 28K DWT Handysize Bulk Carrier was heard fixed delivery Japan redelivery Southeast Asia at $8,000.
14-December-2024
The Baltic Dry Index (BDI) is approaching the 1,000-point mark as earnings for large bulk carriers continue to be lower than expected. The Baltic Dry Index (BDI), a key measure of the strength of bulk carrier markets, has dropped to levels not observed since mid-2023. On Friday, the Baltic Dry Index (BDI) edged closer to 1,000 points as chartering activity decreased and rates for capesize and panamax bulk carriers declined. The Baltic Dry Index (BDI), which serves as a comprehensive gauge of the health of bulk carrier markets, dipped an additional four points to 1,051. Consequently, the Baltic Dry Index (BDI) has seen a 41% decline from its last high of 1,785 points on November 15, 2023.
9-December-2024
Panamax bulk carriers are diverting from the Brazil-China grain route due to restricted exports stemming from a severe drought. This shift in the grain-run route to Australia impacts earnings for Panamax bulk carriers due to shorter sailing times. Brazil’s most severe drought on record continues to depress grain exports, reducing both the number of Panamax bulk carriers and the rates on the Baltic Panamax Index P8 (Panamax Santos to Qingdao grain 66,000 metric tonnes) route. On the Panamax bulk carrier front, grain shipments from Brazilian ports remain constrained. Consequently, cargo volumes of 60,000 metric tonnes on the Santos-Qingdao route have sharply declined from $38 per tonne in October to $33 per tonne in November 2024, marking a 13% decrease month-on-month.
9-December-2024
Capesize Bulk Carrier Market
The Capesize Bulk Carrier Market faced a challenging week, with the BCI (Baltic Capesize Index) 5TC experiencing a steady decline, losing $3,909 over the week to settle at $12,727. This downturn reflects subdued market sentiment and an excess supply of tonnage in both the Atlantic and Pacific basins. While the Pacific basin did receive intermittent fresh cargo, the persistent oversupply continued to pressure rates, with the BCI C5 index dropping from $8,705 at the start of the week to $7,415 by the end. Minimal fixtures from West Australia to China highlighted the low activity levels, despite some support from coal cargoes originating from East Australia. The Atlantic Capesize Bulk Carrier Market similarly faced difficulties, especially in the South Brazil and West Africa to China routes, where limited demand and an abundance of ballasters suppressed rates. The BCI C3 index decreased from $19.19 to $17.48 by week’s end. However, as the week concluded, Shipbrokers noted some resistance from Shipowners on the BCI C3, with the North Atlantic showing signs of potential recovery and slightly firmer fixtures emerging, suggesting possible positive developments.
Panamax Bulk Carrier Market
The week brought a spark of life to the Panamax Bulk Carrier Market in the Atlantic, with a healthy demand for grain and mineral cargoes providing a boost to an otherwise stagnant market. A mini-rally emerged from South America with improved offers being accepted for end December arrival dates, a trend many anticipated extending into January 2025 arrival rates, though this has yet to be fully realized. The highlight of the week was a well-spec’d Kamsarmax Bulk Carrier, 82K DWT, securing $14,500 + $450,000 for end December 2024 arrival from Asia. In Asia, excitement was limited due to a sparse fresh inquiry from Australia and NoPac, yet the Panamax Bulk Carrier Market seemed to have found a floor by week’s end. A Kamsarmax Bulk Carrier, 82K DWT, delivery Korea, was reported fixed at $11,000 for a NoPac round trip with grains. Period action was limited, though a new building Kamsarmax Bulk Carrier, 82K DWT delivery from a yard in China, was fixed at $14,250 based on a 10/15 month period.
Ultramax/Supramax Bulk Carrier Market
The week was challenging for the sector, with rates across most regions struggling to gain any positive momentum. In the Atlantic, both northern and southern markets lacked fresh impetus, with Shipbrokers noting limited demand from the south amid an ample supply of tonnage. The US Gulf experienced an uneventful week, with a Supramax Bulk Carrier, 56K DWT, fixed for a short trip to Spain at $20,000. Demand from the Mediterranean diminished, with an Ultramax Bulk Carrier, 63K DWT, fixing delivery from Egypt and redelivery to EC South America at $6,000. In Asia, the availability of bulk carriers was more than sufficient to meet demand, with an Ultramax Bulk Carrier, 64K DWT, fixed for a NoPac round trip redelivery to the Philippines at $11,000. Further south, a Supramax Bulk Carrier, 56K DWT, was fixed from Singapore via Indonesia, redelivering to SE Asia at $12,000. The Indian Ocean region was described as positional, with an Ultramax Bulk Carrier, 64K DWT, fixed from Chittagong for a trip via EC India redelivering to China at $10,000. As the festive season approaches, it will be interesting to see the market’s next moves.
Handysize Bulk Carrier Market
It was another challenging week for the Handysize Bulk Carrier Market, with rates in both the Atlantic and Pacific regions facing downward pressures. The Continent and Mediterranean markets showed little new activity, with the overall sentiment remaining positional and rates hovering around last done figures. A Handysize Bulk Carrier, 32K DWT, was fixed for delivery aps Canakkale on a trip via Turkey to Goa, redelivering in Bangladesh at $9,500. In the South Atlantic, the market fundamentals for Handysize Bulk Carriers remained relatively unchanged, with transatlantic cargoes continuing to drive the region. A Handysize Bulk Carrier, 37K DWT, open in Salvador between 25/27 November, was fixed for delivery aps Recalada for a trip to West Coast South America at $21,000. However, the US Gulf market was notably quiet, largely due to the Thanksgiving holiday, with minimal fixing activity reported. Charterers have been bidding lower than previously agreed levels. A Handysize Bulk Carrier, 38K DWT, fixed delivery SW Pass to redelivery West Coast with grains at $14,750. In the Pacific, despite rising free tonnages and limited cargo availability, some sources suggested that the Handysize Bulk Carrier Market may have reached its nadir, with no further significant drops in rates anticipated. A Handysize Bulk Carrier, 28K DWT, was fixed for delivery dop Vancouver to redelivery in Japan with petcoke at $13,000.
6-December-2024
The Baltic Exchange’s dry bulk sea freight index, which monitors rates for ships transporting dry bulk commodities, declined on Thursday, weighed down by lower rates for capesize bulk carriers. The index, incorporating rates for capesize, panamax, and supramax bulk carriers, dropped 20 points to 1,160 points, marking its lowest level since September 2023. The capesize index fell 79 points to 1,530 points, its lowest since September 14, 2023. Average daily earnings for capesize bulk carriers, which typically carry 150,000-ton cargoes such as iron ore and coal, decreased by $655 to $12,690. Iron ore futures prices also declined on Thursday as investor sentiment softened following state media reports in China, the largest consumer, focusing on qualitative improvements ahead of a highly anticipated meeting expected to shape economic growth strategies for next year. In contrast, the panamax bulk carrier index increased by 26 points to 1,040 points, with average daily earnings for panamax bulk carriers, which generally transport 60,000–70,000 tons of coal or grain cargo, rising by $240 to $9,364. Among smaller bulk carriers, the supramax bulk carrier index edged down by 3 points to 979 points.
21-October-2024
Capesize bulk carrier spot rates have dropped below $19,000 per day as optimism about China diminishes. The average capesize bulk carrier spot rates decreased for the fifth straight trading day on Monday due to a lack of positive developments. The combined average assessment of capesize bulk carrier rates, based on five key benchmarks, dipped below $19,000 per day for the first time since August 1, 2024. Baltic Exchange panelists reduced their estimate by $701, bringing the rate to $18,174 per day.
24-September-2024
The Baltic Dry Index (BDI) surged to 2,000 points following China’s unexpected announcement of an economic stimulus. Analysts, however, are skeptical about the stimulus’s ability to boost consumer demand in sectors like new housing and construction. Two significant developments occurred on Tuesday, both promising for the dry cargo shipping markets in the immediate and more distant future. The Baltic Dry Index (BDI) surpassed the 2,000-point mark, reaching its highest level since July. Concurrently, China, the largest global consumer of seaborne dry commodities, unveiled new economic stimuli. This move could potentially increase shipping demand if these measures effectively enhance China’s GDP growth.
24-September-2024
Australian iron ore dry bulk carrier fixtures have revitalized the previously dormant spot market for capesize bulk carriers. On 19 September 2024, the average spot rates for capesize bulk carriers saw a significant increase of nearly 8%. The spot rate assessments for capesize bulk carriers experienced a notable surge on 19 September 2024, as chartering activities began to revive. Panelists from the Baltic Exchange added $1,897 to their evaluation of the average capesize bulk carrier spot rates across five key routes, elevating the collective estimate to $26,980 per day, which corresponds to a 7.6% rise.
23-April-2024
Spot rates for capesize bulk carriers have seen a sharp decline of 13% in just two days, as mining companies have reduced their activities in the fixtures market. On Tuesday, average spot rates for capesize bulk carriers were adjusted downwards by $2,021, setting the daily rate at $20,389. This significant reduction follows a previous cut of $1,133 on Monday. Overall, the rate assessment for these large vessels, as tracked across five benchmark routes (5TC) by Baltic Exchange panelists, has decreased by 13% since the end of the previous week, highlighting a notable slowdown in the spot market for capesize bulk carriers.
9-March-2024
Rates for Capesize bulk carriers have reached a new 12-week peak, with futures climbing due to a significant increase in cargo volume. On Friday, the rates for these carriers spiked, ending the week at over $35,000 per day for the first time in three months. Futures also surged, suggesting these high rates may persist into the next month. The Baltic Exchange’s index for average Capesize spot rates rose by 6.7% in a single session to $35,200 per day, marking a slight increase from the previous Friday. This comes after the rates experienced a midweek drop but subsequently recovered.
26-February-2024
The Baltic and International Maritime Council (BIMCO) has warned that a significant decrease in cargo volumes due to Houthi attacks in the Red Sea might lead to further destabilization in the region. The Baltic and International Maritime Council (BIMCO) has observed a 21% decline in regional cargo volumes as a result of these attacks, with vessels increasingly bypassing the area. According to recent data from the Baltic and International Maritime Council (BIMCO), there has been a 21% drop in cargo traffic to and from ports located in and around the Red Sea. The Baltic and International Maritime Council (BIMCO) highlights that the assaults by Houthi Rebels and the subsequent avoidance of this critical maritime corridor by some vessels, particularly container ships and gas carriers, since November, are significantly impacting global trade. The Baltic and International Maritime Council (BIMCO) also notes that this decrease in local cargo traffic could jeopardize the fragile geopolitical balance in the region.
22-February-2024
Following the Lunar New Year, capesize bulk carrier spot rates saw a significant surge as major mining operations resumed, leading to a sharp increase in demand. On Thursday, spot rates for capesize bulk carriers were assessed at over $2,000 higher, signaling a revival in activity. This week, the average spot rates for capesize bulk carriers have climbed nearly 14%, coinciding with the conclusion of the Lunar New Year celebrations in Asia and the return of charterers to the market. In anticipation of loading operations scheduled for the first and second weeks of March, major mining firms have been actively securing China-bound capesize bulk carriers, causing reported rates to escalate. On Thursday alone, Baltic Exchange panelists raised their combined assessment of capesize bulk carrier spot rates by $2,047 across five key routes, bringing the daily rate to $23,139.
23-January-2023
The Baltic Exchange in London has reported a decrease in its annual earnings, primarily attributed to the absence of one-off gains from the leasehold sale of its headquarters in the previous year. According to financial statements filed with Companies House, the net profit for the year ending on June 30, 2023, amounted to $562,000, compared to the previous year’s figure of $2.61 million. It’s worth noting that the primary source of revenue for the Baltic Exchange is the sale of memberships, and overall performance is considered satisfactory.
23-December-2023
The shipping industry has recently outperformed expectations, primarily due to technical factors, yet challenges like increasing fleet supply and a pessimistic global economic outlook loom ahead. In November, there was a marked rise in freight markets, highlighted by the Baltic Capesize Index, which nearly tripled during the month and soared to about $55,000 per day by mid-December, a high not seen since October 2021. Similarly, other dry bulk freight market indicators such as the Baltic Panamax Index peaked at $22,000 per day, with the Baltic Supramax and Handysize Indices reaching $17,000 per day and $16,000 per day, respectively. Despite the current upbeat spot markets buoying shipowners, the average rates for Capesizes over the past year are still 8% lower than the 2022 average, and Panamax rates are 40% below last year’s figures. The overall mood in the industry is one of unfulfilled expectations for bulk carrier earnings, compounded by robust trade volume growth, including a sharp increase in Chinese coal imports. A major reason for the underwhelming freight rates is the evolution of fleet trading efficiencies. The increase in inefficiencies in 2021-2022 drove strong freight markets, but the near normalization of these factors in 2023 has affected market balances. However, recent events show that issues impacting fleet trading efficiency, such as rising congestion and the Panama Canal’s virtual closure to bulkers, can still significantly influence freight markets. Recent spikes in shipping capacity tied up at ports globally, especially in the Panamax market, have significantly boosted market rates. Unlike the pandemic period, the current delays are mainly at loading ports in Brazil, Indonesia, and to a lesser extent, East Coast Australia. While this congestion is expected to ease after the seasonal peak in coal, grain, and iron ore exports, the disruptions at the Panama Canal might persist longer due to drought-induced transit restrictions. This situation necessitates longer shipping routes for exports from the US Gulf and other Caribbean origins to Asia, reducing the effective capacity of the fleet by about 30%. There’s also the potential risk of bulkers avoiding the Suez Canal due to rising tensions in the Red Sea. Typically, increased freight rates lead to higher sailing speeds to maximize trade opportunities, but interestingly, speeds have not increased with the recent rate uptick. Analysts, shipowners, and charterers anticipate continued volatility in freight markets, influenced by geopolitical tensions, new regulations, economic factors especially in China, recurring congestion, and inherent volatility towards the end of 2023.
30-November-2023
Capesize bulk carrier rates have seen a remarkable surge since last Friday, achieving daily increases unprecedented in recent years. According to the Baltic Exchange, the average spot rates for capesize vessels jumped by an additional $7,410 yesterday, more than doubling within a week to reach $41,796. This surge in rates is attributed to consistently strong demand over the past three weeks in the long-haul Atlantic trades, which has led to a tightening of capesize bulk carrier capacity. As a result, rates have soared to new highs. Additionally, the number of capesize bulk carriers experiencing congestion has risen in recent weeks, with around 120 such vessels currently affected. The recent increase in rates echoes a similar pattern observed about a month ago, when capesize earnings exceeded $30,000. This was primarily due to a significant reduction in available tonnage in the Atlantic, robust shipments of bauxite from West Africa, and sustained iron ore volumes from Brazil. Overall, the demand for capesize bulk carriers, measured in tonne-miles, has been robust, showing an average increase of around 4% in 2023. The current deadweight tonne-miles are also exceeding typical seasonal norms. Contributing to this rally in capesize bulk carrier rates are China’s economic measures, which include injecting liquidity and accelerating bond issuances. These efforts have boosted demand in the sector, along with the extensive queues of capesize bulk carriers at South Africa’s main bulk export terminals, which have been particularly congested this month. Furthermore, since mid-October 2023, weekly coal cargo order volumes have surged by nearly 150% to 2.7 million tonnes, further fueling the increase in capesize bulk carrier rates.
30-November-2023
The spot rates for capesize bulk carriers have recently experienced their most significant daily surge since 2010, reaching the highest levels observed in the past two years. This remarkable increase was noted by the panelists at the Baltic Exchange, who made a substantial adjustment to their weighted average assessment of these rates. On Wednesday, the cost of hiring a capesize bulk carrier saw an extraordinary rise, increasing by over $7,000 per day compared to just 24 hours earlier. This adjustment represents the largest single-day change in the Baltic Capesize Index in the last 13 years. Specifically, the Baltic Exchange panelists increased their daily assessment of average capesize spot rates across five key routes (5TC) by $7,140. Not only is this the most considerable rise since 2010, but it’s also the most substantial increase in the 5TC assessment since it replaced the previous index in 2014. This significant movement in the capesize market highlights the dynamic nature of shipping rates and their susceptibility to various market factors.
28-November-2023
The capesize bulk carrier spot rates have recently reached an 18-month high, driven by sustained demand for transatlantic iron ore. However, this upward trend in spot rates is expected to be temporary as Brazil’s rainy season approaches, which typically impacts iron ore shipments and, consequently, the demand for capesize vessels. On Tuesday, the capesize bulker market experienced a significant surge, marking the fourth consecutive business day of increases. This rally resulted in the average spot rate for capesizes across five key routes climbing by 9.4%, reaching nearly $34,700 per day, as reported by the Baltic Exchange. Notably, this increase occurred despite a decrease in rates for fixtures in the Pacific market. The Baltic Exchange 5TC route basket, which is a benchmark for the industry, reflected this notable rise in rates. This surge underscores the dynamic nature of the shipping market, where various factors like regional demand, seasonal changes, and global economic conditions can have a significant impact on freight rates. The approaching rainy season in Brazil, a key exporter of iron ore, is anticipated to temper this rally as it usually affects mining operations and exports, leading to a potential decrease in the demand for capesize vessels.
21-November-2023
The panamax bulker market has reached a 13-month high, driven by a scarcity of available tonnage and an ongoing imbalance in the North Atlantic region. On Monday, the Baltic Exchange’s Panamax 5TC, which represents spot-rate averages across five significant routes, surged by 2.2%, reaching $17,235 per day. This marks the first time the average spot rate for Panamax vessels has exceeded $17,000 per day since October 27, 2022.
16-November-2023
The panamax bulker market has hit a seven-month peak, driven by a combination of strong demand and a healthy volume of cargo. This uptrend was particularly notable on Thursday when panamax bulkers saw a significant increase of 6.3%, reaching an average spot rate of approximately $16,200 per day. This rate marks the highest point for the market since it was nearly $16,700 per day on April 11, 2023. This rise in rates is attributed to the favorable conditions of robust demand coupled with an adequate supply of vessels. The Baltic Exchange’s Panamax 5TC index, a benchmark for the industry, has been on a steady upward trajectory over the past week, reflecting the positive momentum in the panamax bulker sector. This current trend indicates a strong recovery and buoyancy in this segment of the shipping market.
31-October-2023
The capesize spot market is currently experiencing a significant decline, described as being “halfway down the mountain,” with India poised to increase its demand for coal. India has been keeping its coal plants operational for longer periods, leading to a need for replenishing its dwindling domestic coal supply. Baltic Exchange’s Capesize 5TC index has fallen by 9.6% in the past two days, dropping to less than $16,800 per day as of Tuesday. This decline follows a sharp 37% drop within a week, from around $29,500 per day on 20 October 2023, as reported by the Baltic Exchange’s Capesize 5TC index. It is anticipated that the capesize bulker market will gradually slow down its descent and stabilize in about two weeks, driven by India’s efforts to secure additional coal supplies.
27-October-2023
Capesize spot rates have experienced a significant drop of 37% in just one week, signaling a bear market for this segment. Weak demand has been cited as the primary factor behind this decline, leading to a sharp decrease in capesize spot rates. Specifically, the Baltic Exchange’s Capesize 5TC index has fallen by 37.4% over the past seven days, reaching a rate of approximately $18,500 per day. This marks the lowest point for capesize spot rates since mid-May 2023. The decrease in capesize average spot rates has been observed in both the Atlantic and Pacific basins, with trading activity remaining sluggish in these regions. The oversupply of tonnage further exacerbates the challenges faced by the capesize bulker sector.
21-October-2023
The strengthening capesize bulker market suggests that China may be considering replenishing its iron ore inventory. This surge in the capesize bulker market may be an indicator of China’s intent to restock its relatively low iron ore stockpiles. Over the past week, the Baltic Exchange’s Capesize 5TC has increased by 6.9% to reach nearly $29,500 per day. Despite a slight pullback in the past two days, this indicates an improved situation compared to a week ago. It’s worth noting that Rio Tinto mines iron ore in Western Australia’s Pilbara region, and the dynamics of the iron ore market often have significant implications for China’s economic activities and global trade.
17-October-2023
The Baltic Dry Index (BDI) has surged past the 2,000-point mark, with average capesize spot rates surpassing $30,000 per day on 17 October 2023. This marks the first time the Baltic Dry Index has exceeded 2,000 points since July 2022. This remarkable uptick can be attributed to a significant enhancement in the assessment of average capesize spot rates. The Baltic Dry Index (BDI), serving as a comprehensive gauge of the strength of bulk shipping markets, excluding smaller bulk carriers, witnessed an impressive 86-point increase on 17 October 2023, reaching a level of 2,058 points. The Baltic Dry Index (BDI) has been on a consistent upward trajectory since the beginning of September 2023, benefiting from a renewed sense of optimism for the Q3 2023, which traditionally represents the most robust period of the year for capesize bulk carriers.
16-October-2023
The Baltic Exchange has offered reassurance to freight futures participants who have been experiencing frustration, although challenges still persist. Some of the globe’s most prominent freight derivatives traders have reported progress in their efforts to compel the Baltic Exchange to address underlying concerns regarding the reliability of its indices. Recent interactions and discussions between the Baltic Exchange and leaders of the newly established Independent FFA Association have been described as a highly positive development by one trader. However, they emphasize that they will persist in advocating for enhancements and increased transparency in the future.
13-October-2023
Handysize bulker rates have reached a six-month peak, driven by increased optimism in the Americas. Shipbrokers report a surge in rates for trips originating from the US Gulf Coast (USG) and the Eastern Coasts of South America (ECSA). The average spot rates for handysize bulk carriers have soared to levels unseen since late March 2023, propelled by a buoyant spot market in the Americas. According to the Baltic Exchange, the handysize average spot rates escalated to approximately $12,400 per day on Friday, marking the first time they’ve achieved this level in half a year. This increase denotes a modest 1.8% rise over the past week, but it’s a substantial 14.1% uptick when viewed in broader terms, highlighting significant growth in the sector.
7-October-2023
Capesize bulk carriers have made a significant recovery with spot rates surpassing $20,000 per day, a level higher than initially predicted. This resurgence in rates is due to tighter supply conditions than anticipated. These capesize bulkers are currently operating in their strongest quarter, and their performance in the typically softer first quarter of the year will depend on natural factors like El Niño. The Baltic Exchange’s Capesize 5TC basket has shown a 4.6% improvement, reaching just over $20,100 per day as of October 7, 2023. This marks the second time in less than two weeks that these rates have crossed the $20,000-per-day threshold.
1-October-2023
The capesize bulker market experienced fluctuations over the past week due to various influencing factors. After a steady rise during the initial part of the week, the capesize bulker market saw a decline towards the end. Analysts attribute these shifts to a combination of shipping market dynamics. The Baltic Exchange’s Capesize 5TC, which provides spot-rate averages across five major routes, recorded a 23.7% increase from 22 September 2023, reaching close to $21,400 per day by Wednesday. However, this was followed by a 4% drop over the subsequent two days, bringing the rate down to slightly above $20,500 per day by Friday.
27-September-2023
Capesize shipping rates have surged by 11% in a single day, reaching a four-month peak, driven by China’s strong demand for iron ore and coal. Baltic Exchange’s data indicates that China’s steel production in August 2023 increased by 3.2% compared to the previous year. The capesize bulker market experienced a significant rise on Tuesday, achieving its highest rate in the past four months. The robust demand from China for essential commodities like iron ore and coal has been a significant factor behind this surge. The Baltic Exchange’s Capesize 5TC index, which provides an average of spot rates across five crucial routes, saw an 11.4% increase on Tuesday, reaching close to $19,900 per day. This rate is the highest since mid-June 2023. The primary iron ore routes to China contributed the most to this increase in the 5TC, as per the Baltic Exchange’s data.
16-September-2023
Brazil’s bountiful grain yield, coupled with impediments at the Panama Canal, have greatly invigorated midsize bulk carriers. Spot rates for both panamax and supramax bulk carriers have surged by nearly 60% since the waning days of July 2023, as per the Baltic Exchange’s data. The opulent grain produce of Brazil and the setbacks faced by the drought-afflicted Panama Canal have breathed new life into the midsize bulk carrier sector. Specifically, these circumstances are enhancing two prominent grain routes.
15-September-2023
The dry bulk spot market experienced a significant uptick this week, buoyed by the heightened trade in bauxite and the surging grain exports from South America. Encouraging sentiments regarding China’s imminent economic stimulus further propelled spot rates, according to industry experts. Over the recent week, there was a marked rise in the dry bulk spot market due to China’s unprecedented bauxite imports and South America’s prolific grain exports. The Baltic Dry Index, an encompassing barometer of the spot market’s vitality, saw a remarkable surge of 16.4%.
30-August-2023
The medium-sized bulker market remains buoyant as vessels circumvent the congested Panama Canal. Extended journeys are diminishing capacity within the midsize bulker realm, consequently sustaining elevated average spot rates. Vessels linger in the Pacific, awaiting passage through the Panama Canal. Insufficient rain in early August prompted authorities to curtail the transit count. The demand for medium-sized bulkers is sustained at a high, as ships bypass the beleaguered Panama Canal in favor of lengthier voyages to their terminus. The mean spot rate for panamax bulk carriers ascended to $13,400 per day on Tuesday, following a 2.8% surge in the Baltic Exchange’s Panamax 5TC basket.
23-August-2023
Midsize bulk carriers are invigorated by the surge in South American grain outflows. Anticipations point to a bounteous grain yield in the Americas this forthcoming harvest. Midsize bulk carriers have been buoyed by the formidable grain shipments from South America, a trend poised to persist through the latter half of the annum. Since the 25th of July, the Baltic Exchange’s Panamax 5TC index has soared by 72%, touching an almost $13,900 daily rate.
21-August-2023
Panamax Market: The sector witnessed a favorable week, underpinned by robust demand from South America, juxtaposed with a tonnage paucity, thus escalating rates. In the North Atlantic, an 80K DWT secured delivery Gydnia via the Baltic to Turkey at $24,500. South America’s impetus led to an 81K DWT finalizing at $17,000 plus a $700,000 ballast bonus for a front haul redelivery from Singapore to Japan. In Asia, an augmented interest from Australia, coupled with continued NoPac demand, resulted in bolstered rates. An 85K DWT, open in Yeosu, settled an Australian circuit at $12,500. As the week neared its denouement, Asian sentiments turned somewhat wary with diminished Indonesian ventures. Nevertheless, spurred by South American demand, proprietors were averse to rate reductions. Considerable period coverage emerged, with an 82K DWT,in North China finalizing 9 to 11 months trading with global redelivery at $14,350.
21-August-2023
Handysize Market: The handy sector reaped benefits this week. In the South Atlantic, reports indicated constrained tonnage availability, with a 37K DWT securing from Rio Grande to West Coast Central America (WCCA) at $19,500. Concurrently, a 35K DWT was decided upon, upon readiness, from Upriver Plate for an Eastern Mediterranean trip in the mid $13,000 range. The Black Sea resonated with activity; a 37K DWT settled a trip from Canakkale via the Black Sea to the Western Mediterranean at $7,400, while a 36K DWT mirrored a similar journey in the $7,000 range. In Southeast Asia, tonnage constraints influenced a 38K DWT finalizing from the Philippines via Australia to China at $12,500, and a 32K DWT in Kandla secured a route passing through Colombo via Australia to Indonesia with Alumina cargo at $8,750. The period market witnessed activity with a 38K DWT from Georgetown, Guyana, settling for 12 months at 105.5% of the Baltic Handysize Index (BHSI).
15-August-2023
The Panamax bulker market achieved a zenith unseen in the past trimester on Monday, as vessels languished in protracted queues to traverse the Panama Canal, consequent to limitations imposed by drought-induced draught constraints. Daily average rates for panamax bulk carriers have ascended by a notable sum exceeding $4,000 daily in the preceding three weeks. On Monday, the Baltic Exchange’s Panamax 5TC surged 2%, culminating at an impressive near $12,300 daily, eclipsing the $12,200 threshold for the inaugural occasion.
29-July-2023
The market for capesize bulk carriers surged to a four-week pinnacle as activity intensified in the Atlantic basin. On Wednesday, the average capesize bulk carrier spot rates experienced a remarkable surge of $2,500 in just one day, following a sluggish start earlier in the week. During the past week, fixture activity in the Atlantic basin gained momentum, propelling the Baltic Exchange’s Capesize 5TC basket of spot-rate averages across five vital routes to a remarkable 27% increase since 21 July. As of Friday, the BCI 5TC (Baltic Capesize Index 5TC) rates reached an impressive almost $15,200 per day, marking the highest point since 28 June.
24-July-2023
Panamax bulk carriers average spot rate is at a four-month low, according to market data. The panamax bulk carrier market must be in higher demand in the Atlantic basin if it is to reverse its steady downward trend. The Baltic Exchange’s Panamax 5TC basket of spot-rate averages across five key routes has fallen 17.4%.
6-July-2023
The Baltic Dry Index (BDI) has dipped below the 1,000-point mark, signifying a decline, as the steel market shows signs of weakening. Concurrently, there is an upsurge in the export of iron ore from Brazil and other nations, coinciding with a pullback in capesize bulk carrier futures. Notably, market analysts and shipbrokers attribute this drop in the Baltic Dry Index (BDI) to persistently lackluster iron ore demand from China, causing steel prices to remain subdued for the past month.
1-July-2023
The capesize dry bulk carrier segment experienced a reversal in the momentum of average spot rates, following the weakening of China’s manufacturing sector for the third consecutive month. On Friday, the Baltic Exchange’s Capesize 5TC declined to $14,100 per day. This marked an 18.1% decrease from the previous week, offsetting the 36% surge in average spot rates achieved in the prior week. Due to the persistently subdued economic data from China since the Q1 2023, growth forecasts for 2023 have been revised downward.
22-June-2023
Over the past week, the Baltic Dry Index (BDI), serving as an indicator for the dry bulk spot market, experienced a substantial 15.2% increase, reaching its highest level in a month at 1,240 points on Friday. Among the different sectors, the capesize bulk carrier segment played a pivotal role in boosting the Baltic Dry Index (BDI). Capesize bulk carriers were engaged in transporting coal to China, facilitating the country’s electricity plants in meeting the escalated demand for air conditioning.
30-April-2023
The Baltic Exchange’s Capesize 5TC increased 17.3% since 21 April 2023. The Baltic Exchange’s Capesize 5TC reached to $19,100 per day on Friday which is the highest point since surpassing $21,000 per day in December 2022. Notwithstanding the downtrend in iron ore prices, the Capesize 5TC of the Baltic Exchange witnessed an increment. The capesize charter rates have reached their peak for the year 2023, despite the decreasing prices of steel and iron ore. The Atlantic and Pacific basins have observed a surge in capesize fixture activity over the past week, as China prepares for Labour Day. Although the prices for iron ore and Chinese steel have experienced a continuous decline, the capesize bulk carrier market concluded the week on a highly positive note.
18-March-2023
The Baltic Exchange’s Handysize 7TC (Average Spot-Rates Seven Key Routes) increased 10% over the week to $11,361 per day on Friday. The Baltic Exchange’s Handysize 7TC is at its highest point since late December 2022. The Baltic Exchange’s Handysize 7TC started an upward trend in mid-February 2023. Dry bulk shipping market positivity has resumed this week. The Baltic Exchange’s Handysize 7TC increased as a consequence of an abundance of fixture activity in the spot and period dry bulk markets. Likewise, average spot rates for other bulk carrier sizes increased but plunged on Friday.
12-March-2023
The Baltic Exchange’s Capesize 5TC has soared 544% over the past 21 days to $14,500 per day on Friday. The Baltic Exchange’s Capesize 5TC was $2,246 per day on 17 February 2023. Capesize bulk carriers’ average spot rates have increased by more than five times in the last three weeks due to China’s strong manufacturing, better weather in Brazil, and the Australian mine maintenance conclusion. Currently, Australia to China capesize bulk carrier iron ore rate is at $8.30 per metric ton.
7-March-2023
The Baltic Exchange’s Capesize 5TC increased 11.3% on Monday to $11,026 per day to cross the $10,000 for the first time since mid-January 2023. The Baltic Exchange’s Capesize C10 increased 14.9% on Monday. The dry bulk spot rates continue their acceleration on Monday after China announced a target GDP (Gross Domestic Product) growth of 5% for 2023.
27-January-2023
The Baltic Exchange’s Capesize 5TC declined 31.2% over the week to $4,443 per day. The Baltic Exchange’s Capesize 5TC plunged to its lowest level since August 2022. The Baltic Exchange’s Capesize 5TC plunged by a third over the past week as China observed the Chinese New Year holiday.
23-December-2022
The Baltic Exchange’s Capesize 5TC (Capesize Bulk Carriers Spot Rate Averages Across Five Key Routes) bounced 18.3% on Wednesday to nearly $23,200 per day, following an 8.2% leap on Tuesday. Capesize Bulk Carriers Spot Rates jumped for the second straight day on Wednesday, reaching their highest point in five months as China begins construction again. Capesize Bulk Carriers Fixtures have been more abundant over the past week.
18-November-2022
The Baltic Exchange’s Capesize 5TC (Capesize Bulk Carriers Spot Rate Averages Across Five Key Routes) plummeted 27.3% since 11 November 2022 to $9,305 per day on Friday. The Baltic Exchange’s Capesize C5 iron-ore route from Western Australia to Qingdao, China plummeted 11.3%. The spot rate market for capesize bulk carriers plummeted last week due to China’s economic uncertainty continued, while that for the panamax, ultramax, and supramax bulk carrier spot rates stagnated due to light chartering activity.
26-October-2022
November Baltic Exchange Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged 1.88% to $12,889 per day on 25 October 2022. On the other hand, December Baltic Exchange Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged 1.48% to $11,829 per day on 25 October 2022. Bulk Carriers FFAs (Forward Freight Agreements) indicate rough times ahead for dry bulk shipping as China encounters financial headwinds. Furthermore, November Baltic Exchange Panamax Bulk Carriers FFAs (Forward Freight Agreements) plunged 3.68% on 25 October 2022. Any spike in Capesize and Panamax Bulk Carrier Spot Rates could be short-lived as China’s economy continues to struggle.
17-October-2022
November Capesize Bulk Carriers FFAs (Forward Freight Agreements) plunged nearly 12% on Monday. November Capesize Bulk Carriers FFAs (Forward Freight Agreements) market for bulk carriers collapsed on Monday, while Capesize Bulk Carrier Spot Rates did not provide much excitement for dry bulk shipping. The Baltic Exchange’s Capesize 5TC (Spot Rate Averages Across Five Key Routes) tumbled on Monday due to low cargo volumes in the Atlantic basin.
5-October-2022
The Baltic Exchange’s Capesize 5TC (Spot Rate Averages Across Five Key Routes) increased 13.8% on Wednesday to $21,175 per day. The Baltic Exchange’s Capesize 5TC increased to its highest point since the end of July 2022. The Baltic Exchange’s Capesize 5TC increased despite China’s celebration of Golden Week. Capesize bulk carriers have been somewhat limited this week due to the holidays in the Far East. The Forward Freight Agreement (FFA) market decline implies a more serious decline in future spot rates of capesize bulk carriers.
4-October-2022
The Baltic Exchange’s Capesize 5TC (Capesize Spot-Rate Average Rates Across Five Key Routes) increased 10% to $18,611 per day to mark its highest point since late July 2022. The Baltic Exchange’s Panamax 5TC (Panamax Spot-Rate Average Rates Across Five Key Routes) increased to $18,987 per day. The Baltic Exchange’s Supramax 10TC (Supramax Spot-Rate Average Rates Across Ten Key Routes) increased to $18,351 per day. The Baltic Exchange’s Handysize 7TC (Handysize Spot-Rate Average Rates Across Seven Key Routes) increased to $18,313 per day. Dry bulk shipping’s spot rates are increasing regardless due to low supply. The low supply balance of bulk carriers will remain tight over the coming years due to more stringent regulatory burdens and a low bulk carrier new building order book in the Far East shipyards. Currently, the international fleet of bulk carriers is around 13,105. Today, 1,937 capesize bulk carriers, 3,008 panamax bulk carriers, 4,069 handysize bulk carriers are trading in the oceans.
3-October-2022
The Baltic Exchange Capesize 5TC (Spot Rate Average Across Five Benchmark Routes) has improved 170% since 12 September 2022 to just over $16,900 per day. However, since 12 September 2022, November Capesize FFAs (Freight Forward Agreements) plunged from about $17,800 per day to about $15,100 per day. FFAs (Freight Forward Agreements) indicate a return to lower physical rates after the bulk carrier sector rebounded from September 2022 lows. FFAs (Freight Forward Agreements) is indicating a turn for the more alarming over the next several months.
15-September-2022
Panamax Bulk Carrier Spot Rates shift downward for the first time since late August as FFA (Forward Freight Agreement) curve moves negatively. Panamax Bulk Carrier Spot Rates took their first plunge in more than two weeks on Thursday, ending a recovery that has seen the Panamax Bulk Carrier segment withstand a dry bulk slump. On Wednesday, the PanamaxFFA (Forward Freight Agreement) market turned the futures curve in a downward direction. The Baltic Exchange’s Panamax 5T (spot earnings of panamax bulk carriers on five key benchmark routes), plunged 2.6%.
9-September-2022
The Baltic Exchange’s Panamax 5TC (Average Spot-Rate Across Five Key Routes) increased to $16,786 per day on 9-September-2022 due to port congestion and strong grain cargoes. The Baltic Exchange’s Panamax 5TC increased due to South American grain exports and port congestion. On the other hand, Capesize Bulk Carrier spot rates have declined. Panamax Bulk Carrier spot rates increased as the grain markets in both the East Coast South America (NOPAC) and NoPac (North Pacific) came busy.
2-September-2022
The decreasing Atlantic market for Panamax Bulk Carriers is witnessing some hope in the Forward Freight Agreement (FFA) for higher spot rates. However, that does not necessarily mean that a floor for spot rates is on the way. The Average Panamax Spot Rate for the Baltic Exchange P7 Route (the US Gulf to Qingdao) has plunged 19.7% since 1 August to $52.44 per tonne. On the other hand, The Average Panamax Spot Rate for the Baltic Exchange P9 Route (Santos to Qingdao) plunged 27.9% to $39.63 per tonne.
29-August-2022
The Baltic Exchange’s Capesize 5TC (a spot-rate average across five benchmark routes) plunged 14.7% during the day to reach $5,636 per day. The Baltic Exchange’s Capesize 5TC is at its lowest point in more than two years, when it came in at $6,177 per day on 4 June 2020. Capesize bulk carrier freight rates plunged to a two-year low as China’s faltering real estate sector forces steel cutbacks. China’s steel production has fallen 6.4% for H1 2022. On 24 August 2022. Capesize bulk carrier freight rates plunged further as China’s hurting real-estate industry continues to put the brakes on turning iron ore into steel for construction.
28-August-2022
Capesize bulk carrier spot rates continue to plunge. However, China’s looming $1 trillion economic stimulus plan focused on infrastructure spending may boost the dry bulk shipping market. In Q4 2022, average capesize bulk carrier spot rates may reach $14,500 per day. The Baltic Exchange’s Capesize 5TC (spot-rate average across five key routes) plunged 46% over the past week to $3,413 per day. Currently, the Baltic Exchange’s Capesize 5TC is at the lowest figure in about 27 months. Furthermore, capesize bulk carrier spot rates reached their lowest point since May 2020.
27-August-2022
The average spot rate for handysize bulk carriers has plunged to its lowest level since February 2021. The average spot rate for handysize bulk carriers’ freight rates plunged 18-month low as the Atlantic market weakens. The Baltic Exchange’s Handysize 7TC (spot-rate average across seven key routes) dropped to $17,189 per day, marking the lowest level since it came in at $17,011 per day on 22 February 2021. The Baltic Exchange’s Handysize 7TC has been on a downward trend since mid-May when Handysize 7TC topped out at $30,004 per day on 16 May 2022.
19-August-2022
The Baltic Exchange’s Capesize 5TC (Spot-rate average across five key routes) plummeted 20% during the day to reach 7,188 per day. The Baltic Exchange’s Capesize 5TC plummeted below $8,000 per day for the first time since late January 2022. The Baltic Exchange’s Capesize 5TC plummeted due to China’s demand for iron ore staying soft. At the core of 2022’s weak demand for capesize bulk carriers has been the decline in iron ore trades. The economic stimulus from the Chinese government may increase capesize bulk carriers rates.
15-August-2022
The Baltic Dry Index (BDI) fell to its lowest level in a half year as holidays and low demand weighed heavily on dry bulk shipping. The Baltic Dry Index (BDI) which functions as a barometer for dry bulk market performance, plunged 5.3% over the past week to 1,477 points on Friday. The Baltic Dry Index (BDI) fell under 1,500 points for the first time it came in at 1,422 points on 7 February 2022. Capesize bulk carrier market resumes dwelling in the doldrums.
15-June-2022
The Baltic Dry Index (BDI) increased to 2,284 points. The dry bulk markets revealed a little hope on Tuesday after plunging steadily for two weeks. Tuesday’s gain marked the first time that the Baltic Dry Index (BDI) enhanced after declining gradually from 2,633 points on 1 June 2022. Capesize 5TC reached over $19,000 per day. Capesize 5TC ascended back to the positive with support mostly from the Atlantic Basin. Capesize C3 route was at $31.18 per tonne on Tuesday. Capesize C5 route was at $12.41 per tonne on Tuesday. Rio Tinto capesize bulk carrier for 190,000 tonnes of iron ore from Dampier, to Qingdao at $12.40 per tonne. The Panamax 5TC route reached $23,657 per day on Tuesday. This small gain came after the Panamax 5TC slid steadily by 23% from $30,392 per day on 23 May 2022.
14-April-2022
Baltic Exchange Handysize 7TC decreased to $26,075 per day. Average Spot Rates for Handysize Bulk Carriers reached the lowest levels for the second time in more than a month. On 28 March 2022, Baltic Exchange Handysize 7TC at $32,616 per day. In the Atlantic basin, according to Handysize Shipbrokers, more enquiries would be required for Handysize Bulk Carriers to witness more advancements moving forward. In the Pacific basin, according to Handysize Shipbrokers, Handysize Bulk Carriers suffered a setback as all three transpacific routes reported losses amid light chartering activity. Baltic Exchange Handysize HS6 roundtrip voyage between North China and North America Pacific Coast plunged to $25,750 per day. Handysize Shipbrokers has reported little chartering activity.
7-December-2021
The capesize bulk carrier market resumed its upward trend today. The Baltic Exchange Capesize 5TC (Average Five Capesize Benchmark Spot Rates) climbed $43,030 per day. This situation is caused by weather delays and port congestions. Furthermore, there is respectable capesize cargo flow in the Atlantic and more capesize cargoes are predicted in near future. Capesize time charter rates in Q1 2022 are anticipated to be better than historical averages. China’s economic growth may support demand for iron ore. The average freight rate for the iron ore Western Australia-to-China route increased to $14.84 per metric tonne. Panamax, ultramax, and supramax bulk carriers saw more modest spot rate improvements over the last week.
29-September-2021
The capesize bulk carrier market experienced a notable shift on Thursday, with rates for transpacific round-trips witnessing a significant drop, disrupting the positive momentum seen in the Baltic Capesize Index since the previous week. The spot rates for the China-Japan transpacific round-trip (C10) route between South America and Asia declined by 6.6%, settling at $77,723 per day, as per data from the Baltic Exchange. In contrast, the benchmark round-voyage rate from China to Brazil and back saw a minor reduction of $159, closing at $64,255 per day. This downturn marks a pause in the bull run, particularly on the C10 route, which, despite the decline, remains approximately $13,000 higher than the Brazil-China roundtrip rates. The decrease in the transpacific rate is seen as a minor correction in the face of broader market instability, influenced by cyclone disruptions and fluctuations in the iron ore market. With the futures market significantly lagging behind spot rates, there’s an anticipation of a more pronounced drop in spot market prices in the forthcoming weeks. This adjustment reflects a slight weakening in the Pacific market, contrasting with the ongoing strength in the Atlantic basin, where rates are buoyed by a limited supply of vessels. The overall average spot rates for capesize bulk carriers, as measured by the Baltic Exchange’s capesize 5TC (a weighted average across five key routes), fell by $610 to $74,176 per day, interrupting a 22% increase observed from the previous Friday to Wednesday. Despite this, the Atlantic market’s robustness, driven by short vessel availability, presents a contrasting scenario to the Pacific downturn. In the derivatives market, Capesize Forward Freight Agreements (FFAs) for September showed some resilience, gaining $236 per day on Wednesday to settle at $54,257 per day, as reported by the Baltic Exchange. This movement in FFAs, particularly for prompt contracts, remains notably lower than current spot rates, highlighting a bearish outlook among traders for the near-term future of capesize bulk carrier rates.
12-September-2021
The Baltic Exchange’s assessment of Capesize Bulk Carrier Average Spot Rates (5TC) increased to $52,908 on 12 September 2021. Capesize bulk carrier spot rates reached the highest level observed since May 2010. The most prominent one-day leap of the 5TC was observed on 12 September 2021. Baltic Capesize Index (BCI) influenced the capesize bulk carrier futures market on Monday, especially for front-month contracts. October 2021 capesize future contracts were asking about $47,000 per day. Bauxite exporter Guinea is experiencing a rainy season and last week’s military coup increase the risks. Gigantic aluminum producer Emirates Global Aluminium (EGA) has a facility in Guinea. On the other hand, one of the biggest capesize charterers Vale is striving to obtain capesize bulk carriers to meet the demand. Vale chartered around 20 capesize bulk carriers for loading in October for voyages to China from Brazil, all at around $30.50 per metric tonne which is the most expensive level since November 2009. Iron ore prices are sinking, but fixtures for capesize taking ore voyages to China have achieved higher rates.
15-July-2021
Freight rates for capesize bulk carriers are plummeting. China reduced the demand for iron ore, one of the two main cargoes for the capesize business. China’s iron ore imports fell to their lowest in 13 months in June 2021. Analysts expect China’s iron-ore consumption to fall during Q3 2021. China reduces its annual crude steel output to reach its emissions targets. In June 2021, China’s iron ore imports slipped to 89 million tonnes. Front-end capesize bulk carrier contracts took the greatest hit. Capesize bulk carrier contracts traded at $32,750 per day by mid-afternoon. On the physical side, chartering activity for capesize bulk carriers has been relatively steady but shipbrokers report that capesize bulk carrier freight rates have softened as charterers and shipowners look around for direction in the market. The Baltic Exchange’s capesize 5TC, a spot-rate average weighted across five (5) routes, plummeted to $30,272 per day. Furthermore, the China-Brazil capesize bulk carrier round voyage plummeted to $27,040 per day. Western Australia-China capesize bulk carrier route plummeted to $10.88 per tonne on Tuesday.
29-April-2021
Spot rates for capesize bulk carriers have surpassed the $40,000 per day. Baltic Dry Index breaks 3,000 points in more than a decade. FFA (Forward Freight Agreements) capesize 5TC contracts for 2022 trade at levels of over $20,000 per day during trading on Friday. Positive sentiment has come to the capesize market on the back of Vale’s announcement that Vale will intend to produce 450 million tonnes of iron ore annually by the end of 2022. Capesize 5TC May contract was trading at levels of around $42,000 per day on Friday in London. Australian miners are striving to ship as much product as possible before the end of the fiscal year and while iron-ore prices remain high. Baltic Exchange Western Australia to China capesize route increased to $13.24 per tonne, its priciest level since mid-December 2013. Dry Bulk Shipping Analysts anticipate capesize rates to average $26,000 per day in 2021.
5-April-2021
Rizhao Steel’s shipping arm Cara Shipping chartered out 2010 built capesize bulk carrier 180K DWT MV Stella Alice for around $20,650 per day to Rio Tinto for the long-term. Currently, Singapore-based Cara Shipping owns and operates fourteen (14) large bulk carriers. Australia-based Rio Tinto has booked capesize bulk carriers for iron-ore voyages from Dampier Port to China. Capesize bulk carriers FFA (Forward Freight Agreement) rates surpassing $25,000 per day for Q2 and Q3 2021. Lately, Baltic Exchange’s 5TC capesize bulk carrier rates have increased to $22,468 per day. Capesize bulk carrier front-haul rates from the Continent to China increased to $45,000 per day. Other Australia-based mining giant BHP chartered in capesize bulk carriers for iron-ore voyages from Western Australia to China for around $10.30 per tonne. Recently, iron-ore prices approached $170 per tonne which increased the capesize freight rates.
13-January-2021
On 13 January 2021, Capesize bulk carriers weighted TCE (Time-Charter Equivalent) average rate reached to $26,489 per day. This is the highest point since October 2020 due to a stronger outlook for the capesize market. On 13 January 2021, the Baltic Exchange attributed the capesize physical rally to the paper market rising on 2021 optimism but remarked the capesize market viewed the paper spike as unsustainable. Capesize FFA (Freight-Forward Agreement) rates are still showing momentum and gained for February 2021 to $15,338 per day. On 6 January 2021, Capesize FFA (Freight-Forward Agreement) volumes increased to 6,251 lots from 2,310 lots. In FFA (Freight-Forward Agreement), a lot is equal to 1,000 metric tonnes of cargo or one day of charter hire.
23-October-2020
Baltic Capesize Index TCA (Weighted Time-Charter Average) increased to $18,749 per day on 23 October 2020. Baltic Capesize Index volatility has been relatively low this week. Capesize market players are optimistic for Q4 2020. Brazil iron-ore cargo supported the capesize spot rates. Capesize market exceeded to the downside late last week, due to negative sentiment rather than real cargo imbalance in the Atlantic. Abundant capesize tonnage supply in the Atlantic contributed remarkable pressure to capesize charter rates on the Brazil-China route and for trans-Atlantic voyages. However, mid-week, Brazil iron-ore cargoes reversed the situation and capesize spot rates increased. Brazil’s iron-ore giant Vale’s quarterly production report contributed positive sentiments for the capesize market. On the Pacific market, capesize bulk carrier supply reached something of an equilibrium with iron-ore cargo supply from Australia, which pointed to work in charterers’ favor. While the capesize bulk carriers experienced more favorable charter rates, supramax and handysize charter rates kept falling. Handysize TCE (Time Charter Equivalent) from the US Gulf to China decreased to $13,414 per day.
14-August-2020
Handysize bulk carriers TCE (Weighted Time Charter Equivalent) increased to $8,846 per day on 14 August 2020 due to firm handysize bulk carrier fixture activity in European markets. BHSI (Baltic Handysise Index) increased to 491 points and reached 2020’s peak. Capesize bulk carrier spot rates dropped while handysize bulk carriers spot rates reached new highs. Handysize bulk carriers spot rates increased ex-United States Gulf. However, the Pacific handysize bulk carriers spot rates remained considerably flat. Handysize bulk carriers TCE (Weighted Time Charter Equivalent) for the South America-Skaw/Passero route increased to $11,388 per day on 14 August 2020. Panamax bulk carriers TCE (Weighted Time Charter Equivalent) increased to $16,415 per day on 14 August 2020 due to limited tonnage supply. Capesize bulk carriers TCE (Weighted Time Charter Equivalent) increased to $19,916 per day on 14 August 2020.
6-August-2020
Panamax bulk carrier’s TCE (Average Time Charter Equivalent) increased to $14,070 per day due to strong demands for American grain and Australian coal. Panamax bulk carrier’s rate for the benchmark US-China route improved to $43.25 per metric tonne this week. Panamax bulk carrier’s TCE (Average Time Charter Equivalent) for the Japan-South Korea transpacific roundtrip increased to $13,242 per day. Atlantic panamax market increased with strong grain demand from US Gulf as well as a coal shipping from the Baltic sea. On the other hand, capesize bulk carrier rates see more modest gains last week. Capesize bulk carrier’s TCE (Average Time Charter Equivalent) for the Brazil-China route increased over the week to $17,486 per day.Capesize bulk carrier’s rates for a voyage from Australia to China at $8.50 per metric tonne. Capesize bulk carrier’s TCE (Average Time Charter Equivalent) should stay around $19,000 to $21,000 per day for the rest of 2020.
30-July-2020
Over the past week, capesize bulk carrier rates improved insignificantly. TCE (Weighted Time Charter Equivalent) for capesize bulk carriers increased by 7.5% to $18,300 per day. The capesize bulk carrier rates increase simply represent a precursor to another move upwards. The capesize bulk carrier rates increase is driven predominantly by the Brazil and Australian round voyages on continued iron ore demand strength”, the Baltic said. The capesize bulk carrier rates for Brazil-to-China route gained increased to $17.47 per tonne. On the other hand, capesize bulk carrier rates for Australia-China route increased to $7.16 per tonne. Handysize bulk carrier rates continued to increase quietly. TCE (Weighted Time Charter Equivalent) for handysize bulk carriers rates increased to $8,539 per day. Handysize bulk carriers rates were broadly flat with limited cargoes from ECSA (East Coast South America) and in the Pacific market.
17-June-2020
Capesize freight rates jumped to $19,036 per day on Wednesday. Capesize spot markets are no longer being fixed at loss-making levels. Baltic Dry Index (BDI) passed the 1,000-point mark for the first time in 2020. A standard capesize bulk carrier requires around $9,000 per day to break-even on an operating cash flow basis and around $14,000 daily on a free cash flow basis, after deducting regular debt repayments. Brazilian mining giant Vale’s iron ore export has returned to the market after mining stoppages due to coronavirus lockdowns and heavy rains. Baltic Dry Index (BDI) July 5TC contracts closed at $22,266 daily. Baltic Dry Index (BDI) Panamax contracts are also increased essentially due to the movement in the capesize market rather than any underlying factors.
4-June-2020
Baltic Dry Index (BDI) increased to, supported by a more robust capesize spot market. In May 2020, the Baltic Dry Index (BDI) reached the lowest level reported for that period in 20 years. However, BIMCO predicts that dry bulk markets will survive at gloomy levels for the remainder of 2020. According to BIMCO, there will be a vital decrease in demand in the dry bulk market in 2020, as well as extraordinary supply-side overcapacity as seen in 2016. After the global financial crisis in 2008, the Chinese financial incentive rescued the dry bulk market. However, 2020 will not be the same recovery. Capesize bulk carriers earnings were appraised at $6,177 per day. Capesize bulk carriers in the spot market back above the estimated daily operating expenditure of $5,019, excluding bunker costs.
13-May-2020
On 13 May 2020, Baltic Exchange Capesize Index fell to -17 from 123 on 12 May 2020. Capesize bulk carriers weighted TCE (Time Charter Equivalent) plunged to $2,082 per day. Capesize bulk carrier rates plunged due to coronavirus pandemic. On 20 April 2020, Capesize bulk carriers weighted TCE (Time Charter Equivalent) reached $10,081 per day. Capesize bulk carrier earnings have dropped over the past few weeks from last month’s high of $10,081 per day achieved on 20 April. However, demand for capesize bulk carriers diminished due to low cargo supply in both the Atlantic and Pacific basin. Capesize bulk carriers weighted TCE (Time Charter Equivalent) plunged to $1,873 on the Brazil-China route. Capesize bulk carriers Australia-China leg dived to $3.57 per metric tonne. Except for supramax bulk carriers, all dry bulk shipping market nosedived.
26-April-2020
Capesize freight rates declined throughout the last week of April 2020 as oil prices plunged to record levels. On 20 April 2020, May 2020 Western Texas Intermediate (WTI) future contract rates plunged below zero for the first time ever to -$40.32 per barrel (bbl) before settling to -$37.63 per barrel (bbl) for the day. On 24 April 2020, June 2020 Western Texas Intermediate (WTI) future contract rate increased significantly to $17.10 per barrel (bbl) but were still low enough to keep capesize freight rates on a downward trend. In a poorly flooded oil market triggered volatility in bunker rates. Therefore, primarily the leading fluctuation came in the form of bunker volatility on the back of the going negative May 2020 Western Texas Intermediate (WTI) future contract rates for the first time in history. According to Baltic Exchange Capesize Index, Capesize bulk carriers’ weighted timecharter equivalent (TCE) average plunged to $8,381 per day on 24 April 2020 from $10,081 on 20 April 2020. Capesize bulk carriers’ weighted timecharter equivalent (TCE) rate of Brazil-China route plunged to $9,045 per day from $11,123 per day. Furthermore, Very Low Sulphur Fuel Oil (VLSFO) plunged to $225 per metric ton. According to Baltic Exchange dry bulk market report, positive tide turned on the last week of April 2020 for capesize freight market, as capesize voyage freight rates extremely plunged due to the softness in the oil market, as the worldwide supply of oil continues to climb. Furthermore, lingering capesize chartering activity amid iron ore importers are anticipating lower prices also weighed down capesize freight rates through 24 April 2020. Baltic Exchange Dry Index plunged to 672 from 757, while Baltic Exchange Panamax Index declined to 747 from 822 on the last week of April 2020. Baltic Exchange Supramax Index plunged to 388, while Baltic Exchange Handysizes plunged to 247 in the last week of April 2020.
7-April-2020
After a substantial freight rate increase in the spot market for capesize bulk carriers, the Baltic Dry Index (BDI) has soared. Baltic Dry Index (BDI) has achieved a tremendous daily rise since 2018. On 24 March 2020, Baltic Dry Index (BDI) has risen 626 points which is the biggest daily rise since 20 April 2018. Baltic Capesize Index (BCI) has been at sub-zero levels since February 2020. On 24 March 2020, Baltic Capesize Index (BCI) has rebounded to 204 points. Furthermore, capesize earnings reached $5,853 per day. According to Baltic Exchange, shipowners swiftly accepted offers on both West Australia to China (C5) and Brazil to China (C3). Previously, Baltic Exchange Brazil to China route (C3) for iron ore has been steadily declining since early January 2020 due to insufficient dry bulk fixtures. As of 24 March 2020, Brazil to China route (C3) increased to $10.28. Capesize bulk carriers have been earning less than OPEX (Daily Operating Expenditure) since 24 January 2020. Currently, Capesize OPEX (Daily Operating Expenditure) is $5,026 per day. According to shipbrokers, capesize spike may not be sustainable for a long period. Spot capesize bulk carriers might be affected by steel mill closures in Japan and coronavirus pandemic which might trigger recession all over the world. On the other hand, many shipowners struggling during crew change operations. Dry bulk fixtures in the Atlantic basin is lagging behind that in the Pacific basin. Furthermore, coronavirus restrictions measures in South Africa has provided an additional choice to shipowners. On 24 March 2020, Colombia to Rotterdam capesize route (C7) for coal was the only capesize route that decreased to $5.015 per tonne due to lack of fixtures. Baltic Dry Index (BDI) plummeted on 20 January 2020 as bunker price spreads hit capesize bulk carriers. The majority of capesize bulk carriers do not have scrubbers. Furthermore, capesize shipowners have been avoiding fixing long voyages. Baltic Dry Index (BDI) plummeted 729 points on 20 January 2020. Baltic Dry Index (BDI) 729 points is the lowest point since late April 2019. Due to tight capesize availability, the Atlantic basin was trading at a slight premium to rates in the Pacific basin couple of weeks ago. On 20 January 2020, capesize spot rates plummeted again due to the bunker market. In the bunker market, the spread between very low-sulfur fuel oil (VLSFO) and intermediate fuel oil (IFO) remains high. Global average $662 per metric ton and $402 per metric ton respectively. On 20 January 2020, a weighted time-charter average for the Baltic Capesize Index’s (BCI) five major benchmark routes (5TC) was assessed at $7,760 per day. In Decem 2019, Baltic Capesize Index’s (BCI) five major benchmark routes (5TC) was assessed at $14,451 per day. Furthermore, abundant capesize tonnage in the Pacific basin appears to be building pressure on capesize rates. Shipowners have been trying to fix their vessels for short trips. Just a small percentage of the world’s capesize fleet is fitted with scrubbers. Capesize sector exposed to bunker price volatility for very low-sulfur fuel oil (VLSFO). Currently, at international bunkering hubs, the spread between very low-sulfur fuel oil (VLSFO) and intermediate fuel oil (IFO) remains high. In capesize market, voyage rate weakening in the Pacific basin has been putting earnings firmly sub-opex (operating expenditure) levels. Like capesize bulk carrier market, identical patterns have been appearing in the panamax market, but to a less dramatic extent. Trans-Atlantic panamax fixtures have been low and panamax spot rates plummeted on 20 January 2020 in the Atlantic basin as panamax tonnage slowly piled up. On 20 January 2020, weighted time-charter average for the Baltic Panamax Index’s (BPI) five major benchmark routes was assessed at $7,791 per day, In Baltic Exchange Supramax Index (BSI), which was officially launched in 2006 and is currently based on a standard 58K DWT bulk carrier, market sentiment remains average. Currently, supramax spot rates in the Far East are exceptionally poor. On 20 January 2020, Baltic Exchange Supramax Index’s (BSI) weighted time-charter average to remain static at $6,156 per day.
16-September-2019
In the first week of September 2019, surging iron ore exports from Brazil will keep Capesize and VLOC (Very Large Ore Carrier) ships in high demand in the Atlantic Ocean which will support the continued surge in dry bulk freight rates. Capesize market is witnessing a festive period with spot rates reaching record highs despite growing concerns of a slowdown in the global economy due to the USA-China trade war. Recent strength in spot dry bulk freight rates are expected to continue over Q4 2019 due to the upcoming IMO (International Maritime Organization) 2020 regulations and Brazil’s iron ore exports. In January 2019, Vale’s dam accident triggered widespread casualties in Brazil. Hence, iron ore supply from Brazil tumbled in the first half of 2019. In April 2019, Brazil could export less than 20 million metric tonnes of iron ore. Baltic Capesize Index (BCI) dropped to historical low values in the first week of April 2019. In Brazil, after approval from the court, Vale’s iron ore supplies have now resumed. After Vale’s dam collapsed in January 2019, Brazil’s iron ore exports registered a steep recovery. In July 2019, Brazil exported 34 million tonnes of iron ore which is more than 80% higher than the exports in April 2019. There is a strong demand for capesize bulk carriers in Brazil which created a shortage of capesize tonnage in the Atlantic Ocean. Hence, huge demand for capesize tonnage has been leading to skyrocketing spot capesize freight rates. Brazil exports most of its iron ore to China. China has been accounting for the lion’s share, capesize bulk carrier takes about 90 days to complete a round voyage from ex Brazil to China. Capesize bulk carriers that loaded cargo in June at Brazilian ports for discharge in China would be available again for loading only in September. According to AIS data, not many capesize bulk carriers and VLOCs (Very Large Ore Carriers) repositioned in the Atlantic to meet the surging demand in Brazil which triggered spot rates are on an upward spiral. Additionally, in the run-up to the impending IMO (International Maritime Organization) 2020 regulations, effective supply of capesize bulk carriers has contracted. In order to avoid using expensive low sulfur fuel and save on bunker costs, many shipowners are retrofitting their capesize bulk carriers with scrubber before IMO (International Maritime Organization) regulation comes into force on January 2020. Scrubber fitting at the shipyard takes about a month, during which time the bulk carriers will be removed from the operating fleet. In total, 45 Capesize bulk carriers and VLOCs (Very Large Ore Carriers) were retrofitted during June-August 2019 which is equivalent to 3% of the Capesize bulk carriers and VLOCs (Very Large Ore Carriers) operating fleet in terms of DWT (Dead Weight Tonnes). As IMO (International Maritime Organization) deadline (January 2020) approaches with almost 10% of the additional Capesize bulk carriers and VLOCs (Very Large Ore Carriers) fleet scheduled for retrofitting at shipyards in the remaining months of 2019. Hence, these two conditions will be taking the spot rates even higher during Q4 2019.
2-September-2019
On 2 September 2019, Baltic Capesize Index (BCI) reached 4,659 points, its highest level since 17 May 2010. Baltic Exchange’s five capesize routes (5TC) reached $36,101 per day today which is the highest in 9 years. In the last three weeks, capesize benchmark routes have increased by 27%. On 22 July 2019, Baltic Exchange’s five capesize routes (5TC) reached $32,963 per day. Capesize spot rate increase caused by cargo supply especially Brazil’s iron ore exports continues to outstrip the list of available capesize ships in the Atlantic Ocean. Brazil’s healthy iron ore demand struggled to find capesize tonnage. According to market veterans, capesize spot rates might potentially reach $50,000 per day over the next few months. In April 2019, Brazilian iron ore exports dropped to 18 million tonnes, but in July 2019 Brazilian iron ore exports reached 34 million tonnes which is predicted to stay at this level till the end of 2019. Baltic Exchange’s capesize Brazil-China (C3) benchmark reach to $28.73 per tonne. On the other hand, capesize spot rates for Trans-Atlantic (TA) round-trips continue to trade at around an $8,000 premium to those for round-voyages across the Pacific Ocean where capesize vessel supply is greater. On 2 September 2019, Baltic Exchange Capesize Index (BCI) Gibraltar-Hamburg (C8_14) for Trans-Atlantic (TA) round voyage reached at $39,725 per day. Baltic Exchange Capesize Index (BCI) China-Japan (C10_14) Trans-Pacific round-trips round voyage reached at $31,688 per day. Baltic Exchange’s Forward Freight curve still points to a bearish trend in rates for the rest of 2019. Current capesize spot rates reflect strong momentum in the physical shipping market. Baltic Exchange’s Capesize Forward Freight assessment for September 5TC contracts rose to $32,058 per day and October 5TC contracts rose to $28,708 per day. Baltic Exchange’s Capesize Forward Freight Contracts for the fourth quarter (Q4) 2019 also rose, but are still lower than those seen for the third quarter (Q3) 2019.
12-March-2019
Capesize dry bulk carrier freight rates have plummeted below operating costs of $5,000 per day last week. Capesize dry bulk carrier owners are planning to idle their vessels because of the weak capesize dry bulk freight market. Experienced shipping market veterans believe that capesize market has bottomed out and is set for a rebound. Capesize dry bulk carrier freight rates can’t go much lower before ship owners start idling vessels. Capesize dry bulk carrier freight rates reached bottom and that an upturn should materialize very shortly. Capesize to panamax dry bulk market ratio is now is the lowest level since early 2016. Previously, when capesize dry bulk carrier freight rate was at such low levels, market rebound followed. Current capesize dry bulk carrier freight rate weakness represents the intra-year low for 2019, and forecast the Baltic Dry Index to average around 125% higher in Q2 2019. Currently, capesize dry bulk carrier freight rate costs around 40% less to hire a vessel and having 125% more cargo capacity. Soon, panamax dry bulk charterers to pool cargoes into capesize dry bulk carriers. United States – China trade negotiations are expected in late March could also trigger a rally in dry bulk rates. Capesize dry bulk operators are turning towards slow steaming amid the weak earnings. Capesize dry bulk carriers’ optimal speed for was lower at 11 knots at the beginning of 2019.
17-April-2017
Baltic Dry Index (BDI) is 36% below its end-March peak at 844 due to a steep drop in iron ore prices, which are down roughly 32% to $54 pmt since the beginning of 2017. Q1 2017 strength in freight rates was driven by the strength in prices for iron and coal. There will not be any recovery on capesize dry bulk carriers until iron ore prices recover from the historic bottom. Q3 and Q4 2017, dry bulk fleet growth matches cargo demand. In order to have a fundamental recovery in freight rates, besides iron ore prices, China’s coal needs might trigger rise. The second half of 2017 will be a soft market with low freight rates. In 2017, net fleet growth will be just around 2% and fleet growth will come in below cargo demand growth. Seasonal growth might impact as a spike but not fundamental. In Q2 2017, Chinese coal imports may increase because of coal-power electricity and less electric generation from hydropower plants.
16-April-2017
As the BDI – Baltic Dry Index shows significant gains, second-hand dry bulk carriers price tags continue to increase. Second-hand dry bulk carrier values suddenly increased in March 2017 due to surging time charter rates. 5-year-old, second-hand capesize dry bulk carrier 180K is now worth $31.2 million up from $24.1 million in the first week of March 2017. 5-year-old, second-hand panamax dry bulk carrier 80K is now worth $18.4 million and supramax dry bulk carrier 53K is now worth $16.4m million.
11-April-2017
Greek tycoon shipowner and operator John Angelicoussis chartered out 2011 built capesize dry bulk carrier 179K DWT M/V Anangel Mariner for a year at $20,750 per day to Engelhart Commodities. BDI – Baltic Dry Index up to 1,262 points and dry bulk market positive sentiment continues with capesize sector progress.
29-March-2017
Credit-Suisse analyst Greg Lewis says dry bulk carrier values will continue to progress. 2017’s improvement means that bulker asset values have risen by around 40% since the BDI – Baltic Dry Index set record lows in Q1 2016. The scarcity of modern dry bulk carriers for sale will push asset prices for both modern and middle-age bulk carriers. Period market is gaining breadth with 83 fixtures Q2 2017 and many charterers fearing higher rates in the near future.
20-November-2016
In the second week of September 2016, Baltic Dry Index (BDI) punched through the 1,000-point mark and hitting highs not seen for nearly 2 years. Capesize rates at least have shown signs of life after a terrible year. Panamax rates have been on a steady upward trend helped by the recent rebound in Asian coal markets and seasonal demand from the US Gulf and Black Sea grain trades. Ship values at lows not seen since the 80s. 5-year-old capesize ships are now worth only around $24 million, panamax and supramax ships only $14 million to $15 million. Dry Bulk Shipping market’s recent rebound can be attributed to the usual seasonal bounce and shipping analysts believe the market is in for around another two years of poor freight rates as new deliveries and weak trade growth slows any rebound. In 2016, 44% of expected new dry bulk deliveries have been delayed which helped the market. Strong and bold shipowners who would be able to sustain at least another 18 months flat rates, then today looks like a good time to invest.
4-May-2016
In February 2016, BDI (Baltic Dry Index) after hitting an all-time low of just 290 points, the Baltic Dry Index has put in a sustained rally to break above 700 in May 2016. Dry bulk shipping market may be breathing a sigh of relief that the market pain has been eased a little bit, dry bulk operators and shipowners will all be well aware this is no moment for hasty celebrations. Cape size spot market rates have now risen to around $8,000 per day which is at or even below break-even levels. Dry bulk shipping bounced due to an unexpected surge in Chinese steel prices and resulting iron ore demand. Iron ore price has hit a 15-month high and spike in speculative trading on steel and iron ore distorted the market. Arguments between bears and bulls, are raging over the real position of China’s economy and its impact on global commodities demand. Bulls argue the current trade slowdown is cyclical rather than structural, and demand will recover sooner than expected. If ship demolition rate is maintained through the year it would total 7.2% of the world fleet will be scrapped in 2016 which would be a record.
23-March-2016
Baltic Exchange might be taken over for $2.55 billion by Chinese interests. 270-year-old The Baltic Exchange story arrives courtesy of The Southeast Asian bourse operator Singapore Exchange Ltd (SGX). the SGX is leading in Iron Ore and LNG. Singapore soon will be an Asian maritime center and The Baltic Exchange is clearly now on the sales block. SGX is unlikely to be the only bidder. The Baltic Exchange is not a huge business in financial terms, probably worth less than $150 million, but it has a big strategic importance to shipping and maritime. The Baltic Exchange soon will lose its independence.