BDI Reaches New High with 635 Points

The Baltic Dry Index (BDI) has experienced a further increase with the continued recovery of the dry bulk shipping industry as it surged by 38 points to a mark of 635 points on April 15.

The Capesize index was up by 118 points reaching 949, while the Panamax and Supramax indexes were up by 27 and 11 points, respectively, resulting in 727 and 525 points.

Average daily earnings for Capesizes saw a surge of USD 892 amounting to a total of USD 7076, while the average daily earnings for Panamaxes and Supramaxes were up by USD 219 and USD 120, reaching a total of USD 5796 and USD 5494, respectively.

The new high follows the latest rebound of the dry bulk shipping industry as the BDI’s previous jump by 13 points brought the index to 500 points on April 6, after its plunge to a record low of 298 points seen at the beginning of February.

During the first quarter of 2016, the shipping rates for vessels transporting commodities, such as coal, iron ore and grains, staged a comeback after hitting record lows.

Freight rates for large Capesize vessels carrying iron ore along Australia-Far East routes reached USD 2.99 per tonne in Q1, 2016 and are expected to hover at USD 3.30 per tonne for the rest of Q2, 2016, while average rates for the Transatlantic Brazil-Far East routes reached USD 5.8 per tonne in Q1, 2016 and will continue the current upward trend averaging at USD 8.5 in Q2, 2016.

Panamax vessels along the Australia-India route for coal deliveries saw their average spot rates hit USD 6,100 per day in Q1, 2016 and they are expected to rise to a forecasted USD 8,000 in Q2 2016, an approximate 30 percent increase.

However, due to uncertainties in the macroeconomic outlook, IHS Inc believes that this trend could diminish into the second half of the year.

The vessel orderbook for the rest of 2016 stands at about 60 million dwt, which represents 8 percent of the total dry bulk fleet size, IHS estimates. Total deliveries for this year are expected to be around 50 million dwt.

The dry bulk market is expected to face a transitional year in 2017, as demand will outpace supply.

World Maritime News Staff

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