The Baltic Dry Index (BDI) started last week on a firmer footing despite the trade tensions between US, China and Turkey that waned investors’ confidence.

The freight market seems rosy this week with the Baltic Dry Index (BDI) surging toward a multi-year high.

After the final whistle was blown on the World Cup tournament, the Capesize market seemed to morph into an on-form goal scorer with sights set to cross the $25,000-mark in the Capesize 5 time charter average rates.

After experiencing a good run last week, the Capesize market stumbled at the opening of the week but subsequently recovered some of the lost ground by mid-week.

Newbuilding orders across most shipping markets have started to drop off after a whopping $10bn was committed in the first quarter of 2018, but the prevailing trends suggest little has changed from the boom and bust cyclical mentality of ship owners aided and abetted by the prevailing attitude of financiers, according to VesselsValue.

The capesize market has surpassed expectations amid the World Cup lull, posting higher rates as activities picked up across all the Asia-Pacific routes.

Freight market is showing much lethargy this week, which is similar to the week before as the shipping activities slowed down in June.

The brewing trade war between the US and China is seen having varied effects on different parts of the shipping industry. While much will depend on if and when the tariffs actually kick in, analysts seem to agree that the worst effects will be felt by the container shipping industry, exacerbating an already difficult situation with oversupply of capacity and slowing global trade.

Under the shadow of a likely trade war between US and China, the freight market showed lethargy with little activities and weaker derivatives.

The Capesize market was hard hit after force majeure was being declared in Guinea this week. The declaration had increased the supply of vessels across the Asia-Pacific and Atlantic basins, thus bringing down Capesize freight rates in the process.

Page 4 of 53