Dry bulk shipowners are not helping their own cause by a failure to scrap vessels, which will lead to an “extremely volatile” market recovery warns Precious Shipping.
The Baltic Dry Index (BDI) achieved a three-year high at 1,588 last Tuesday, thanks to the rally seen among the industrial commodities. In particularly, the prices of base metals have rallied, while iron ore prices are showing a mixed movement but still hovered above the $60 per mt level.
Dry bulk shipping is all the rage. Consider that Scorpio Bulkers (SALT), a bellwether of the sector, has seen its share price strengthen with the seemingly improved dry bulk market.
Chinese yards saw new orders pick up in the first nine months of the year, rising 8.7% from the previous corresponding period to 20.13m dwt as a recovery in dry bulk shipping rates in the later part of the year seemed to inspire more new orders.
Commodities-focussed north China port operator Qinghuangdao Port reported good cargo throughput growth in the first nine months of the year, with overall throughput at its three terminals rising 30% to 290.7m tonnes from 224.3m tonnes in the previous corresponding quarter.
Dry bulk ship operators are calling for the wider vetting of the shipping industry with the focus on stakeholders, including charterers, port terminal operators and port state control.
Clipper Bulk is consolidating its business in three locations in Europe, the US and Asia, closing down five offices.
BahriBunge Dry Bulk, a new venture between the Saudi national shipping company Bahri and commodities trader Bunge, has opened offices in Dubai.