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.
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.
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.
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.