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BDI crashes below 300 points as dry bulk shipping companies burn cash

The dry bulk shipping market has continued its southward plunge into territories unknown with the Baltic Dry Index (BDI) falling below 300 points on Thursday.

Marcus Hand, Editor

February 4, 2016

1 Min Read
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In the normally slack period run-up to Chinese New Year the BDI lost a further points on Thursday to hit 298 points, an all time low unthinkable even two months ago in December 2015.

Both capes and supramaxes were down with on panamaxes moving positively with Baltic Panamax Index (BPI) up five points at 289 points.

The scale of the damage this is doing to dry bulk shipping companies was revealed by Western Bulk, which is in the process of selling its chartering division to its investment fund parent.

Western Bulk Group started 2016 with $48.6m in free cash, a number that had been fairly consistent through Q4 2015, but by 22 January this year had just $25.3m. Even without its chartering arm the company estimated its core Western Bulk Shipholding would be running at a cash burn rate $4m - $5m per month.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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