Despite a free fall in the BDI since the beginning of the year, most forecasters are still optimistic that dry bulk shipping will be better than in 2012 and 2013. Since January 2, the first day of 2014 that the BCI was published, rates have tumbled to two-thirds, falling from over $35,000 per day to just over $10,000 per day.
Capesizes in particular, the largest segment of dry bulk carriers published by the Baltic Exchange, fell in large part due to unexpectedly poor weather which interfered with iron ore loading operations in key countries and ports for iron ore export in Australia and Brazil. There is also the seasonal downturn with Chinese New Year just around the corner, and so the slide, to some degree, is seasonal and was to be expected. Continue reading