Dry Bulk Market Continues To Fall Amid Poor Conditions

Dry Bulk Market Continues To Fall Amid Poor Conditions

Dry Bulk Market Continues To Fall Amid Poor Conditions

Article #92

2017 was labelled as the defining year for the Dry Bulk Shipping market, as it began to endured it's third year of tribulation, with a considerable amount believing this would send many owners under. The unfortunate reality is that the cape size bulker market is failing to regain the glimmer of momentum it briefly experienced at the beginning of April. The slow activity and crowded tonnage among both basins has created downwards pressure on spot rates.

According to brokerage firm Fearnleys, the recent softening of rates has been attributed to unimpressive trading volumes for the major iron ore trades. Miners were moderately active this week with only very few stems to cover on the West Australia/China trade, which has freight levels to drop.

While still uneventful, the Brazil/China trade experienced slightly more positive activity, with a nominal growth at 5 pct to USD 14.3 pmt. The average daily earnings for 180,000-tonners are currently stable at 12,000USD.

The Baltic Capesize index has been experiencing a continuing week-on-week decline of 3.4% due to the daily regression of rates. The Baltic Capesize Index value for May has fallen under a value 1000 points with downward trend.

Further complications for the Dry Bulk Market could ensue with the Port stocks of Iron ore in china reaching an all-time high, along with their revocation of 29 operating licences for domestic steel firms last month due to regulation compliance failure; and another 40 facing a similar fate.

All benchmark routes for the index finished slightly lower compared with the previous week, however there is some belief that short-duration fixtures will be put in place with rates set to improve before the monsoon holidays.

Source: https://www.fearnleys.no

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