Baltic Dry Index Regains Ground Lost, Moves Back Above 700

by Ship & Bunker News Team
Friday July 8, 2016

The Baltic Dry Index (BDI) Friday moved back over the 700 point mark for the first time since last April.

The sector's key barometer Friday was up 4 points to reach 703, regaining the ground it lost since the 2016 high of 715 reached on April 27.

Despite the increase, average spot TC rates in the Capesize segment shed $39 to settle at earnings of $7,149 per day.

Meanwhile, the Panamax segment gained $96 to reach earnings of $6,327 per day, and Supramax's gained $32 to reach earnings of $6,767 per day.

While positive - the index has gained 123 points in a little over two weeks, having been sat at 580 on June 21 - the BDI remains some ways off the 12-month high of 1,222 seen on August 5, 2015, and market watchers appears cautious at best.

On the upside, Asia rates next week are expected to be supported by anticipated bad weather for China, while Platts reported a "surge in demand" with capsize rates most notably seen getting support from a increase in Chinese demand for coal and iron ore.

However, earlier in the week Ship & Bunker reported that AlixPartners LLP (AlixPartners) warned that virtually every company in the industry is still at risk as "the outlook for the year remains extremely negative."

Ship & Bunker News Team
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