- The BDI has broken into the 1,100 level, registering at 1,107 for the day. However, the BDI eased later toward the end of the week settling under 1,100.
- Capesize 5 time charter average reached $13,163, up to $580 on-day and up to $920 since Monday’s rate at $12,243.
- Supramax time charter average dropped by $68 on-day to $8,556 on Thursday, while the Handysize time charter average gained by $31 to $5,943.
According to a report by Freight Investor Services, Baltic Dry Index (BDI) formed a new norm of staying above 1,000 points and even extended its gains toward the 1,100 marks this week.
More cargoes from Western Australia
- The gains may have to do with the better Capesize freight rates from Western Australia where mining majors are seeking for vessels to do exports.
- According to trade sources, most of the mining majors were seeking for Capesize vessels for loading on June 10 onward to mid-June period from Western Australia to China.
- New fixtures were done at higher levels on Tuesday, which prompted a more bullish market outlook despite some easing of momentum seen later in the week.
- Some ship-owners were heard not to be concerned with the slight dip in rates as they anticipated more fixing over next week.
No impact from South Africa workers’ strike yet
- South Africa’s countrywide port shutdown has offered little impact to the shipping market yet.
- The workers union, Satawu had called for 48 hours strike from Tuesday onwards, bringing mariners working in the ports to seek for equal salary payment between white and black workers.
- The Capesize paper market did not respond to South African ports shutdown but was affected by the doldrums in the Atlantic market instead due to European holiday on Thursday.
- By Wednesday, the Capesize 5 time charter average reached $13,163, up to $580 on-day and up to $920 since Monday’s rate at $12,243.
- Later, the charter average had a correction of $198 to $12,965 due to holidays in Europe.
No more long weekend blues for Panamax
- Panamax paper market had a steady start in the week and the market quickly forgotten the post long weekend blues, thanks to a flurry of buying across the curve.
- However, the uptrend in Panamax freight rates soon became tested as the European markets closed for Ascension Day and traded at a low of the day at $10,550 on Thursday.
Increase in Panamax time charter average
- July contracts also lost values and dropped from $11,000 to $10,500 by Thursday as the holiday came in full swing.
- Thus, Panamax time charter average saw a small rise of $28 on-day to $10,740 on Thursday, up to $294 since Monday.
- The selling pressure was felt in the Supramax market as well due to thinner trading volume as some European trade participants celebrated the holidays.
- As such, Supramax time charter average dropped by $68 on-day to $8,556 on Thursday, while the Handysize time charter average gained by $31 to $5,943.
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Source: FIS
