Dry Bulk to "Stay Worse Than We Expected" as BDI Slumps to 8 Month Low

by Ship & Bunker News Team
Monday November 16, 2015

The Baltic Dry Index (BDI) Friday slumped to its lowest level since March, leaving the sector's key index standing at 560 after falling every day over the previous three weeks, and losing 226 points in that time.

It was last lower on March 4, at 559, and Friday's value is equal to the 560 set on March 12.

The development will undoubtedly leave market watchers wondering where the bottom might be, and will be especially worrying as November is generally a better part of the sector's season.

As some analysts have noted, when the BDI hit 631 on November 6, this was already the lowest ever November level.

The BDI's lowest ever overall level of 509 was reached on February 18, 2015, which is now just 51 points away - an amount that is less than the index shed in the three days leading to Friday's 560.

And based on the comments from some shipowners, the worst is indeed yet to come for the beleaguered segment.

Robert Bugbee, President, Scoprio Bulkers last week likened the dire market to a "50 to 200 car pile-up."

"[The dry bulk market is] much worse than we expected and will stay worse than we expected," he said at last Tuesday's Marine Money conference.

Last month JPMorgan Chase & Co. (J.P. Morgan) predicted that 2016 will be even worse for the sector than 2015.

Ship & Bunker News Team
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