April 2017

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.