Further Gains for Capesize Rates, But Baltic Dry Index Still Ends Week With Another Historic Low of 354

by Ship & Bunker News Team
Friday January 22, 2016

Friday marked the end of a second miserable week for dry bulk, with the Baltic Dry Index falling 1 point to a new historic all time low of 354.

The sector's key benchmark has now fallen to a record low for the last 14 consecutive trading days, and has fallen every day so far in 2016.

But once again there was some positive news for capesize owners, with average spot TC rates rising for the third consecutive day to $2,984 per day, having sat at $2,662 per day on Tuesday.

The news will be particularly welcome for owners in light of comments made earlier this by New York-based maritime adviser Basil Karatzas, who said supply of capesize vessels outstripped demand by some 50 percent.

Despite the uptick in capesize rates, the overall index Friday was once again dragged down as average spot TC rates for Panamax and Supramax vessels, which fell to $2,672 per day, and $3,742 per day respectively.

"It's a bloodbath, which calls into question the survival of many dry-bulk shipping companies," said Karatzas.

Last week Adrian Tolson, Senior Partner at 20|20 Marine Energy highlighted to Ship & Bunker that dry bulk's dire position was making it "incredibly difficult" for bunker suppliers to provide credit to the sector to buy fuel.

Ship & Bunker News Team
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