Dry bulk fortunes soar, capes above $20,000 as BDI hits highest point of the year

Dry bulk fortunes soar, capes above $20,000 as BDI hits highest point of the year

Dry bulk fortunes are soaring this week led by capesizes, which are trading on the spot market for in excess of $20,000 for the first time since early September last year.

Fearnleys noted in its most recent weekly report that activity from Brazil and Australia has been very healthy with cape rates smashing through the $20,000 a day mark this week and expected to strengthen further in the coming days despite July traditionally being a weaker time of the year for dry bulk rates.

The last time capes traded above $20,000 a day was on September 3 last year, according to VesselsValue.

Panamax owners are also enjoying very strong spot rates. A transatlantic round voyage currently pays owners about $12,500 per day, while a short fronthaul from the Continent now pays $20,000.

Supramaxes and ultramaxes have found good support following the trend by bigger sizes. Atlantic and Southeast Asia have made impressive gains. Black Sea grains pushed rates higher and charterers have had to pay close to $20,000 per day for ultramax trips to Asia this week.

The Baltic Dry Index climbed by 103 points yesterday, reaching 1,549 points, its highest figure for the year so far.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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