What a glorious week for the dry bulk freight market, with the Baltic Dry Index continued to rule the waves, maintaining its ascendency over the 1,000 point-mark following its first breakthrough last Friday.
Precious Shipping managing director Khalid Hashim has warned that if scrapping of bulkers does not pick-up in Q4 the market could dip sharply in the first quarter of 2017.
The sluggish dry bulk shipping market has passed the rock-bottom stage but the recovery will remain fragile over the next couple of years, according to CK Ong, president of U-Ming Transportation Corp.
The dry bulk market has hit bottom, but whether it is set to significantly improve is another question.
Container freight rates from Asia – Europe just $250 per teu, the Baltic Dry Index (BDI) at 429 points, five-year old capesizes selling for $11m, huge numbers of offshore vessels laid up, vast writedowns and impairments taken on fleet values, and shipbuilding yards racking up billions of dollars in losses.
“The shipping Gods have been buying dry bulk vessels,” was the most quotable quote from the dry bulk session at Capital Link’s 10th Annual International Shipping forum, held in New York.
Minor bulks specialist Pacific Basin Shipping (PacBasin) narrowed its losses in 2015 to $18.5m from $285m the year before although revenue fell 27% to $1.26bn from $1.72bn previously.
The Baltic Exchange has confirmed it has received a number of “exploratory approaches” about a possible buyout, but says no firm offer has been made at this stage.
The Singapore Exchange (SGX) has confirmed it has made a bid to acquire the Baltic Exchange.