Baltic Dry Index Returns Above 800 as Industry Analysts Suggest Market is Ready for Recovery

The Baltic Dry Index gained 28 points to reach 806 today.

The Baltic Dry Index (BDI) broke above the 800 mark again today, gaining 28 points to reach 806, supporting recent analyst suggestions that, with seasonal slowdown around Chinese New Year now over, the market is now positioned for recovery.

Average TC spot rates were up across all major segments today, with Capesize earnings reaching $7,708 per day (+$700), Panamax earnings rising to $7,295 per day (+$16), and Supramax earnings swelling to $8,188 per day (+$196).

As Hellenic Shipping News reports, Allied Shipbroking Inc (Allied Shipbroking) says optimism has startedto  return back to the dry bulk market, with the Pacific basin seeing growing enquiries and activity following Chinese New Year festivities.

"Commodities have been pulling their weight lately, with the increased momentum in demand still keeping things firm," explained George Lazaridis, Head of Market Research & Asset Valuations at Allied Shipbroking.

"A good example of this have been the recent figures coming out of China whereby we witnessed the second highest monthly increase in iron ore imports during the first month of the year."

Lazaridis says gains have largely been observed within the Panamax and Surpamax segments, but there is optimism that the Capesize market will begin its own rally, pushing up the average freight rate again in the process.

"Given the fact that the orderbook in this size segment is minimal and has already showed a relatively slow rate of growth in during the past year, with a fairly modest rate of growth we could easily see rates climb once more," said Lazaridis.

Last week, Ship & Bunker reported that BDI had fallen under the 700 mark, dropping 14 points to rest at 688, and continues a significant reversal in gains made since August.