The Baltic Dry Index’s seemingly constant decline was halted today, as the index remained at Friday’s level of 354 points.
The index has fallen every consecutive trading day since December 24 and has plumbed new record lows every day since January 6.
The strengthening capesize market has helped stopped the rot and has compensated for modest declines in the Baltic indices for handysize, supramax and panamax vessels.
Today’s Baltic Cape Index (BCI) was assessed at 254 points, up 25 on Friday’s level. The index has advanced every trading day since January 19, when it hit a historic low of 185 points.
The BCI’s weighted timecharter average rate (TCA) for five benchmark routes was today $3,184 per day, up $200 since Friday.
Brokers report that capesize cargoes are still short, but idling vessels has helped remove tonnage from the market and firm rates. Reports say 40 to 50 capesize vessels have been idled in Asian waters alone. Owners including Bocimar, Star Bulk and Zhejiang Ocean Shipping Co (ZOSCO) have already confirmed they will anchor vessels until freight rates improve.