The Baltic Dry Index was essentially flat on the day at 1,802 points as higher Capesize rates (+1.4%) offset declines with Panamax (-2.3%), Supramax (-1.7%) and Handysize (-1.6%) rates, reports Seeking Alpha.
Effects of supply imbalance
Advisors thinks the Capesize market could potentially see a sharp rise in rates on a supply imbalance.
Scrubber Installations
The firm noted that with a large number of ships out of active service due to scrubber installations and with lots of cargo still to be moved, such probability is viewed that is higher than otherwise would have been the case.
Spill over to next year
In addition, the form expects such trend to spill over into next year, which in turn could potentially prop up the first quarter’s freight market that historically has experienced the lowest rates at any given year.
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Source: Seeking Alpha
