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BDI closes on 300 points ahead of Chinese New Year

BDI closes on 300 points ahead of Chinese New Year
The Baltic Dry Index (BDI) is closing in on just 300 points as the run-up to Chinese New Year puts dry bulk freight rates under further pressure.

The BDI fell a further seven points on Wednesday to hit yet another historic low of 303 points. The Baltic Capesize Index (BCI) lost a further eight points to drop to 209 points.

Looking at the capesize market in its weekly report on Wednesday Fearnelys commented: “As everyone is getting ready for the Chinese New Year, already depressed rates are under further pressure.”

With rates at such low levels laying-up vessels is becoming an increasingly attractive option. “Owners are exploring the opportunities for laying up tonnage but so far few ships have actually been laid up,” it said.

A report by estimated that cold lay-up costs for a capesize were $1,500 per day and when rates were below $4,500 per day it was the cheaper option compared to operating the vessel. According to the Baltic Exchange the average T/C spot rate for a cape is just $2,775 per day.