Shaky Baltic Dry Index Dips Below 900 for the Second Time This Month

by Ship & Bunker News Team
Wednesday January 25, 2017

The Baltic Dry Index (BDI) has fallen below 900 for the second time in a month, losing 28 points Tuesday to 886.

Average spot TC rates in the Capesize segment shed $900 Tuesday to fall to earnings of $10,789 per day.

The Supramax segment also declined, falling $61 to earnings of $7,408 per day, while the Panamax segment gained $16 to reach earnings of $7,699 per day.

However, George Lazaridis, Head of Market Research & Asset Valuations at Allied Shipbroking Inc. (Allied), suggests that the latest dip in the dry bulk market is attributable to a normal seasonal slowdown, and may even mark the low point for the year.

"Demand is still holding firm and with this period expected to be a low point in the market due to the typical subdued activity which is witnessed just before the Chinese New Year, argument could be made that things should fire up quickly from mid-February onwards," said Lazaridis.

As Ship & Bunker has reported, many in the industry now believe that, while recovery is shakey, the worst has passed for the dry bulk shipping sector.

"As things stand now things are looking fairly positive and we could see the markets show a considerable improvement compared to 2016," said Lazaridis.

"It will take more than increased demand for iron ore however to boost the whole of the dry bulk market."

In November, Drewry Shipping Consultants Limited (Drewry) declared that "market recovery is now underway," as BDI reached 1,045 - the first time the BDI has been above 1000 since August 14, 2015.

Ship & Bunker News Team
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