Wednesday, April 15, 2009

Dry bulk market shows signs of life

After 22 straight falling sessions for dry bulk freight rates, the Baltic Dry Index (BDI) finally headed back up, during the last couple of days.

The BDI rose a further 14 points yesterday at 1,492, coupled with another 15 point gain of 1% last Thursday, the last day of trading before the Catholic Easter Holidays. Thus, the longest slide of the Index since the previous November ended. Of course, the market sentiment remains bleak, as proved by the retreat of the smaller handysize vessels’ index (BHI) at 628 points (down by 7), even at yesterday’s rising session. The lead of the increase was mostly noted at the panamax sector which suffered during March. The relative index (BPI) recovered at 1,185 points, up by 41 from last week. Capesizes, the gauge's biggest vessels, climbed to US$18,035 up by $49 from the previous session, while panamaxes daily spot average rates gained $327 on a day-to-day basis, reaching $9,494. Capesize forward freight agreements for the third quarter, used to bet on future shipping rates, closed at US$19,375 last Wednesday, a 7.8 per cent gain this month. Panamax FFAs for the same period were at US$11,750, a 4.3 per cent advance for this month. The data are from broker Imarex NOS ASA.
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