Brexit Blues Fail to Dampen Dry Bulk Rate Rise

by Ship & Bunker News Team
Tuesday June 28, 2016

While world markets are reeling in the wake the the UK's decision Thursday to leave the EU, dry bulk markets appear to have bucked the trend. 

After the Baltic Dry Index (BDI) Wednesday made gains for the first time in 10 sessions, rising 5 points to 585, it has continued to rise though Monday despite Thursday's vote for a so-called Brexit.

As Ship & Bunker reported Friday, the surprise referendum outcome has had a heavy downward impact on crude and stock markets.

However, the news had no discernible effect on the BDI, which continued its gains Friday, rising 13 points to break the 600 mark and reach 609.

On Monday, with average TC spot rates up across all major segments, the BDI rose another 7 points to reach 616.

Average TC spot rates in the Panamax segment rose $130 Monday to reach earnings of $4,811 per day, while Capesize and Supramax segments rose to earnings of $6,491 per day (+$39) and $6,136 per day (+$35), respectively.

In May, Drewry Shipping Consultants Limited (Drewry) said it believed dry bulk freight rates in 2016 will be, on average, lower than last year as market fundamentals are set to "remain challenging."