Dry CargoEurope

Baltic Dry Index falls for fifth consecutive trading day

There was more woe today for the Baltic Dry Index (BDI), which fell for the fifth time in as many business days to 415 points, down 14 on Friday.

The index began its rout of record-lows on Tuesday last week and since then has lost a total of 53 points.

The Baltic indices for handysize, supramax, panamax bulk carriers all showed consistent decline today, but the capesize segment has been hardest hit by low chartering activity and poor freight rates.

The Baltic Capesize Index was assessed at 314 points today, a decrease of 29 points on Friday’s level. The index is now just three points ahead of its record low of 311 points, recorded on January 9, 2015.

Major benchmark routes for capesize vessels carrying 160,000-ton cargoes have reached their lowest levels seen in 14 to 16 years. The all-important Western Australia to Qingdao, China (C5) route and the Tubarao to Rotterdam (C2) route were today assessed at $2.891 per ton and $2.867 per ton respectively, their lowest levels since 1999 and 1998.

The weakening panamax segment has thrown fuel on the fire of the BDI’s decline. The Baltic Panamax Index (BPI) has fallen every trading day since last Wednesday, stoppering the modest growth seen from mid-December into early January.

The BPI was assessed at 420 points today, a decrease of 14 points on Friday’s level. There isn’t much further to fall before the index again reaches its historic low of 410 points, seen on December 11, 2015.

Timecharter average rates today fell again for 74,000-ton cargoes on all benchmark panamax routes. The biggest decrease was seen for the Skaw-Gibraltar trip to Taiwan-Japan (P2A), which lost $198 on Friday to be assessed at $6,959 daily.

A tiny glimmer of hope was seen for 72,000-ton cargoes on the Newcastle to Qingdao (implied voyage) route, which increased by $0.05 today and was assessed at $5.58 per ton, due to a slight tightening of panamax vessel supply in the region. The route does not contribute to the calculation of the BPI. 

Holly Birkett

Holly is Splash's Online Editor and correspondent for the UK and Mediterranean. She has been a maritime journalist since 2010, and has written for and edited several trade publications. She is currently studying for membership of the Institute of Chartered Shipbrokers. In 2013, Holly won the Seahorse Club's Social Media Journalist of the Year award. She is currently based in London.
Back to top button