The freight market went relatively quiet for the week, ahead of the upcoming May holiday in China. There were no last-ditch fixtures seen just before holidays period and the strong Capesize rates might be the only deterrent for the Baltic Dry Index to slide under the 1,300 level and allowed the index to stabilise at a respectable level of 1,375 reading on Thursday, 26 April 2018.
The Baltic Exchange is dropping handysizes from its key dry bulk market index the BDI.
The capesize market took a hammering throughout the week as the lack of cargoes and tonnage oversupply problem persisted. The under-pressure capesize market pulled the Baltic Dry Index (BDI) to a five-month low at 1,139 points, down 25 points day-on-day at Thursday, 18 January 2018.
Capesize paper rates were pushed to a week-low on Wednesday despite a steady start but finally gave way to selling pressure. As such, January capesize paper saw numerous trades at $18,500 level before slipping to $16,875, down $2,200 day-on-day.
It was a roaring month with freight rates hitting higher notes and saw the Baltic Dry Index (BDI) reaching a new high. By Wednesday, the BDI climbed to 1,536 points, up 30 or 1.99% day-on-day, inching toward the peak of 1,588 recorded in the late October.
Capesize freight rates got a boost from strong fixtures across all routes, thanks to bullish market sentiment. With this support, the Baltic Dry Index (BDI) raced toward the 1,500 points mark and finished 1,486 on Wednesday, up 9 points day-on-day.
Pacific Basin Shipping (PacBasin) is seeing better times as the year goes by. Despite a seasonal mid-year decline, which affected index rates in the third quarter, stronger demand growth across most cargo categories drove a marked increase in rates over the last few weeks of the quarter, the Hong Kong-based minor bulks specialist said in a press release on its third quarter update.
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.