Baltic Dry Index Slides Below 800 as Analysts Point to Seasonal Slow Down

by Ship & Bunker News Team
Wednesday February 1, 2017

The Baltic Dry Index (BDI) shed 14 points Monday, falling to 786 and reversing significant gains made since September, as industry analysts continue to point to seasonality for the dry bulk market's most recent decline.

Average TC spot rates were down across the board Monday, with Capesize earnings falling to $8,318 per day (-$197), Panamax earnings sliding to $7,456 per day (-$140), and Supramax earnings declining to $7,047 per day (-$57).

"The first quarter always has an overall lower level of demand than any fourth quarter due to seasonality. 2016/17 is no different in that respect," said BIMCO in a new dry bulk market report.

BIMCO says that, while 2016's Q4 provided optimism to the industry, 2017's Q1 "will make sure we don't get carried away."

Having reached 1,257 on November 18 - the highest the index had been since November 2014 - BDI has since been up and down, but has lost an overall 471 points.

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

Ship & Bunker News Team
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