The Baltic Exchange’s main sea freight index fell for the 20th straight session to a fresh over eight-month low on weaker demand across all vessels.
Advisors prediction
Breakwave Advisors thinks dry bulk spot rates should bottom out very soon. “With the Pacific spot Capesize market below operating expense levels and with volumes remaining healthy at this part of the world, we expect a small recovery in the next few weeks, towards more sustainable levels,” notes the firm.
Key highlights from the report
- The BDI is down 27% for the first eight days of 2020 and is 69% lower than the 52-week high.
- The index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, declined 18 points, or 2.3%, to 773 points, its lowest level since April 17, 2019.
- The capesize index fell 74 points, or 5.8%, to 1,197 – its lowest since May 8.
- Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes including iron ore and coal, decreased $2 to $9,020.
- The panamax index declined 42 points, or 5%, to 803 points, its lowest since Feb. 27.
- Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, dipped $386 to $7,223.
- The supramax index fell 18 points to 593.
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Source: Reuters, Seeking Alpha
