The Baltic Dry Index (BDI) continued its upward momentum amid analyst suggestions that the long-lived dry bulk slump is now nearing its end.
BDI gained 17 points to reach 1415 – the highest the index has been since November 10, 2014.
Average spot TC rates were up across all segments, with Capesize reaching earnings of $19,797 per day(+$219), Panamax growing to earnings of $12,343 per day(+$57), and Supramax earnings rising to $1,0467 per day.
Shipping brokers are now suggesting that BDI gains will persist in the short term, marking 1700 points as the expected initial resistance level, the report says.
“Things are looking better all around,” said Robert Bugbee, President of Scorpio Bulkers.
“There is strong growth in the world economy and this translates to more shipments of everything from cement and grains to aluminium, coal and iron ore.”
The dry bulk market’s current growth trend has been largely attributed to Chinese efforts in driving demand within the coal and iron ore trade, the report says.
“China’s economy is turning around with a resurgence in infrastructure spending, at a time when its steel inventories are low,” said Basil Karatzas, CEO of Karatzas Marine Advisors & Co. adding: “the dollar (in which commodities are priced) is also at an 18-month low which makes it a good time to buy.”
The BDI only broke the 1000 point mark for the first time this year on March 7, the report says.
Did you subscribe for our daily newsletter?
It’s Free! Click here to Subscribe!
Source: DryShips Inc.
