World News
Dry Bulk Rates Continue Increase, but Pessimism Still Abounds
Dry bulk rates are continuing their rise, with the Baltic Dry Index (BDI) Tuesday gaining 3 points to reach 409, although many industry players still express little hope for a significant rebound within the market anytime soon.
Average TC spot rates where up across all major segments Tuesday, with Capesize earnings swelling to $2,099 per day (+$17), Panamax reaching $3,772 per day (+$41), and Supramax rising to $4,960 per day (+$16).
Alcide Ezio Rosina, President of Premuda S.p.a. (Premuda), says 2016 will be another "very bad" year for rates within the dry bulk segment, with "massive layups" the only way toward market recovery.
"I'm wondering whether we are going to deal with some structural changes in the dry bulk business in the coming years with a consequent change of the rules of the game," said Rosina, adding that he saw the likely demise of many smaller companies within the business.
"The beginning of 2016 has been shocking and shipowners can't go on losing much money day by day."
Many share Rosina's view that ships being taken out of service is the only solution for the sector, although as Ship & Bunker reported in February, some industry players see scrapping - rather than layups or slashing newbuild orders - as the dry bulk market's only hope for meaningful recovery.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 510.00 | 2.50 | 611.00 | 4.00 |
| Rotterdam | 477.00 | 1.00 | 618.50 | 4.00 |
| Houston | 469.50 | 0.50 | 610.00 | 2.00 |
| Fujairah | 501.50 | 1.50 | 708.50 | 3.50 |
| Global 20 Ports Average | 532.00 | 2.00 | 711.50 | 0.00 |
| Global 4 Ports Average | 489.50 | 0.50 | 637.00 | 0.50 |
| Global Average Bunker Price | 571.00 | 1.00 | 759.00 | 0.50 |
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