World News
Baltic Dry Index Hits Bottom?
The Baltic Dry Index (BDI) Monday made its first positive movement in over four weeks, rising 18 points to 516, arresting what has been yet another alarming rate slide for the sector.
It means Friday's bottom - for now - of 498 was the BDI's lowest ever recorded, breaking the previous record of 504 set just 24 hours earlier.
Prior to that, the lowest ever seen by the index was 509 points set in February this year - underlining just how bad 2015 has been for dry bulk.
Monday's uptick is unlikely to elicit much celebration, however, with analysts predicting that 2016 will be another loss making year for the sector.
For Fredriksen's Golden Ocean, Arctic Securities analyst Erik Nikolai Stavseth this week estimated that will amount to around $200,000 per day.
Others view the slump as an indicator of wider problems.
"It signals further trouble for the global economy," said Atul J. Agarwal, managing director at Mercator Ltd.
Last week Eirik Haavaldsen, a shipping analyst at Oslo-based Pareto Securities AS, said dry bulk's main issue was "the lack of demand for iron ore from China."
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 647.50 | 1.00 | 770.00 | 3.50 |
| Rotterdam | 601.50 | 2.50 | 754.00 | 2.00 |
| Houston | 619.00 | 11.50 | 795.50 | 3.00 |
| Fujairah | 651.50 | 1.00 | 895.00 | 2.00 |
| Global 20 Ports Average | 664.00 | 1.50 | 856.50 | 2.00 |
| Global 4 Ports Average | 630.00 | 3.00 | 803.50 | 2.50 |
| Global Average Bunker Price | 718.00 | 0.50 | 914.50 | 0.50 |
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