World News
Baltic Dry Index Ends 5 Week Rising Run as Analyst Sees No Real Recovery Until 2018
The Baltic Dry Index (BDI) Wednesday ended its rising run that began 34 days ago, falling three points to 393.
Still, after falling almost every day of 2016 until February 11, 2016, ending at an all-time record low of 290, the latest rally has seen the dry bulk sector's key benchmark rise 35.5 percent since then.
Average spot TC rates for Capesize and Panamax were all down Wednesday, to $2,034 and $3,808 respectively, while Supramax rates rose to $4,592 per day.
With rates still at historical lows, Luciana Salles, principal analyst at IHS Maritime & Trade Wednesday predicted the market will actually see growth this year, albeit a paltry 0.5 percent year-on-year, with an increase in iron ore and steel exports being the key driver.
For 2017, Salles expects the supply and demand gap will narrow, with demand to rise 2.4 percent year-on-year and supply to increase 1.3 percent year-on-year, and it won't be until 2018 before there will be any notable improvement.
Still, some players are already looking to position themselves for the eventual recovery.
As Ship & Bunker reported yesterday Seanergy Maritime Holdings Corp (Seanergy Maritime) said it was looking to take advantage of "quality tonnage at 30-year historical low prices" so it can "capitalize on the recovery of the freight market and asset values."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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