First quarter container demand growth in the Middle East has spiked 26% according to a report by Drewry Shipping Consultants. However, this will not necessarily translate into better freight rates because of chronic overcapacity, the maritime research and consulting services provider said.
This week, capesizes have displayed a solid performance, thanks to active fixing in the Asia-Pacific regions and firming freight derivative rates. The capesize rally has resulted the Baltic Dry Index (BDI) to rise by 17 points or 1.22% to 1,413 points on Wednesday.
A fall in container freight rates is being driven by oversupply of vessels rather than a drop in demand according to analyst Crucial Perspectives.
Maersk Line has delivered a first half profit of $273m, erasing the loss of $114m in the year-ago period, due in part to the continued recovery in the container shipping market.
After taking various big plunges into the deep, there is no other way for capesize market to go but up. Improved paper market sentiment on paper seems to provide the perfect ingredients for rebound but if there is a need for more cargoes on the physical scene for things to get more rosy.
China’s Shanghai Shipping Exchange (SSE) has officially launched the Belt and Road shipping indices to track freight data among involved countries, following the completion of a two-year trial, reports said.
It is hard to break the chain-links between the dry bulk markets from the general health of China’s economy. In common with a lower China Purchasing Managers' Index (PMI) seen in April, the Baltic Dry Index (BDI) has stumbled to the current level of 1,000 from the 1,100 points last month.