Baltic Dry Index Continues Positive Run to Break 1000

by Ship & Bunker News Team
Tuesday March 7, 2017

The Baltic Dry Index (BDI) today broke the 1000 mark, gaining 54 points to reach 1033 - the highest level that the index has been since mid-December.

Average TC spot rates were up across all major segments today, with Capesize earnings swelling to $11,866 per day (+$1,427), Panamax earnings growing to $9,592 per day (+$321), and Supramax earnings reaching $8,998 per day (+$93).

The news comes just days after BDI again broke above the 900 mark, gaining 33 points on Thursday to reach 904, and another 35 points Friday to end last week at 939.

However, despite BDI's recent positive run, some dry bulk players are still urging dry bulk shipowners to continue scrapping efforts.

Alphabulk, in a recent report, said dry bulk owners should take a more urgent and serious approach to scrapping, suggesting that sending bulkers of 19 years or more to demolition would eliminate between 6-19 percent of the fleet, depending on segment.

Even then, scrapping may not be enough to bring the market back into balance, Alphabulk further suggested.

"Bearing in mind that there is probably another 10 percent of extra capacity hidden in the market as a result of large portions of the fleet carrying out slow steaming, we will leave it to the reader to draw his or her own conclusions on whether demolition alone can bring a turnaround in the market," Alphabulk concluded.

As Ship & Bunker reported earlier this month, a new report from VesselsValue suggests bulker values over the past 12 months have "hit rock bottom," and now have nowhere left to go but up.

Ship & Bunker News Team
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