Dry Bulk Plunge Continues: Baltic Dry Index Sets New Record Low of 314

by Ship & Bunker News Team
Monday February 1, 2016

After a January to forget for many in dry bulk, the Baltic Dry Index Monday fell another three points to 314, despite a slight gain for capesize rates.

Average spot TC rates for capesize Monday rose to $2,806 per day, while average spot TC rates for Panamax and Supramax vessels fell to $2,260 per day, and $3,122 per day respectively.

In January there was only one trading day when the index did not fall (it remained at the record low set the previous day) and one trading day when it was not at a record low level (the index started year falling to two points above the at-the-time record low).

The outlook from analysts makes equally disheartening reading.

"The seas have been exceedingly stormy in the dry bulk sector. The impact from China's economic transition is still resonating, and as yet there are few signs of an imminent improvement," Clarksons wrote in a note Friday, adding that is was "almost as if Poseidon, the Greek god of the sea, has with his powerful trident launched a three-pronged attack."

"As distressed conditions take their toll, hopes will be that the power of Poseidon's trident will eventually start to ebb."

Last week Ship & Bunker reported that Allied Shipbroking suggested 1,430 dry bulk vessels needed to be laid up in order to restore balance to the beleaguered market.

Ship & Bunker News Team
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