The dry bulk market kept on its downward path Wednesday, as the BDI (Baltic Dry Index) kept retreating to new lows. The index was down by 2.12 percent to 878 points yesterday, with the biggest losses occuring in the Panamax segment. Panamaxes lost 2.85Percent, ending the session down to 954 points, with average daily earnings for the vessels ending at $7,612. The capesize index was down 1.09 percent at 1,181 points, with average daily earnings for capesizes, down $192 at $4,358.
According to its latest weekly report, shipbroker Fearnleys commented on the Panamax market by mentioning that it was “yet another quiet week in both hemispheres and rates continue to decline as the tonnage list is growing. There seems to be little hope for change in the coming weeks as fresh business is scarce. The Atlantic market has been more or less inactive with very little transatlantic business being reported. There has been talk of a rail strike in Colombia and business out of S.America and USG has been limited, resulting in the furtherance of the negative movement the last weeks. Baltic rounds have reportedly been done at USD 7500 daily, and charterers are willing to pay high 8000´s for a good vessel for a couple of legs with Atlantic redelivery. Fronthaul was limited as well, but one vessel was fixed with delivery Liverpool for a trip via USEC to India at 17,250 daily. For ECSA/FEast USD 14k+USD 400k was reported. In the Pacific there has also been little activity and owners agree to let their ships go at around USD 8-8250 daily for Nopac RV´s. Aussie/China is fixing around 8500, and Aussie/I”, the shipbroker noted.

In a recent interview with Hellenic Shipping News Worldwide, Mr. Yannis Pachoulis, President of the Hellenic Shipbrokers Association mentioned that he doesn't foresee any great changes till the end of the year, a healthy trend nevertheless. "Of course we are expecting an increase in 4th quarter as it is common in shipping, but nothing extraordinary. The fluctuations of the market will continue and the usual geographical gaps will remain. Shipping as a globalized industry has to be patient, following the international trade market which is showing some optimistic signs, for example the growth of the world trade predicted to reach close to 100 % next 15 years with specific areas like S.America, India, Australia, China, Mexico, African  and South East Asian countries expected to play a prime role in future. In the meantime India’s coal imports have already increased during the last three years and expected to have a further increase of approximately 35-36 % in the years to come" concluded Mr. Pachoulis.
Meanwhile, in the Capesize market, Fearnleys noted that «spot levels again head for all-time lows as summer doldrums are setting in for real. It may seem that players´ focus is presently more on London 2012 than minerals trading, and the absence of fresh enquiry is adding further downward momentum in a segment already under severe pressure. As the number of ballasters with uncertain employment prospects steadily increases, average daily earnings drop 12% w-o-w to come in at USD 4350. With USD 10,500 recently done for 4-7 months on 180k dwt/built 2006 delivering Qingdao prompt, also 180k dwt/built 1996 for 4-6 months delivery S.Korea prompt at USD 10k, present lack of FFA support would today only allow for similar period business to be concluded at a 10% discount” said the report.
Finally, in the Handy markets this week, Fearnleys said that “the low summer activity is still prevailing in the Atlantic. We do not see much fixtures concluded, especially on the period side, but still the voyages from the Baltic/Black Sea and USG with destination to the Far East are worth well over USD 20k daily. Nonetheless the average of all index routes is still not that bad compared to other tonnage sizes and is now at USD 10, 697. Pacific market has been quiet. For Indo-India, large eco Supra now fixed at APS USD 8k + BB 120k. Owners also ask for low teen for SE Asia dely but not seeing any reactions. Nopac also fixed bss APS at USD 8k + BB USD 300k. Indian iron ore market remains quiet with less activity on WCI & ECI. WCI-China rates around USD 8k and ECI-China around USD 5k. RBCT rv fixed at APS USD 9k + BB USD 300k. Red Sea fertilisers to India are fixed high teens. Not much activity seen on short period and rates around USD 10k for large Supra” the report concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide