Tag Archives: dry bulk shipping

A Review of Dry Bulk Shipping Performance and Its Challenges in 2016

18 Sunday Dec 2016

Posted by in Dry bulk shipping

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The bulk carrier Tokyo Bulker passing the Golden Gate Bridge on its way from San Francisco to Lanshan, China

The bulk carrier Tokyo Bulker passing the Golden Gate Bridge on its way from San Francisco to Lanshan, China

2016 – A Year of Huge Ups and Downs in the Dry Bulk Carrier Market

After the Baltic Dry Index (BDI) hit a historic low of 290 points in early February this year, creating a sentiment of pessimism across the industry, the bulk carrier sector began to make its climb toward recovery. The year began positively, with the BDI standing at 473, and then the bottom fell out on February 10. For the capesize sector, things continued to fall to the darkest depths – the nadir being on March 17. By November 18, BDI not only recovered to much healthier levels, but it spiked to 1,257 points. Since then, it has come down to 1,090 points, 13% below where it stood in October. The recovery can be observed in capesize rates which were $1,994 per day in late March, rising to $19,364 per day on November 18. The latest jump was short-lived. Over the last three weeks, we have seen the price fall to below $9,000 per day.
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Are There Too Many Ships in the Sea?

16 Thursday Apr 2015

Posted by in Baltic Dry Index

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Dry bulk shipping industry’s negative performance is cause for alarm

One of the most watched commodities these days is the Baltic Dry Index. The Index has fallen by 90% since reaching a high in 2008, and in February 2015 we saw the worse performance in three decades.Many ships and yachts in the Phuket harbor.

In 2008, shipping vessels were earning around $200,000 daily. Today, shipping companies are earning less than half the total amount of their costs. Consider this: capesize rates equate to approximately $4,300 per day, while the daily operating costs are averaging at $6,500. Once all the additional operating costs are included, owners are spending $13,000 each day. Just four months into the year, eight shipping companies have filed for bankruptcy and under present circumstances, more could follow. The question is: why and will things turn around?

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Indicators are mixed, but markets look to be holding steady or slightly improving

24 Monday Feb 2014

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ISM report 2014A January ISM report on manufacturing and the overall state of the economy caused a sharp reaction on Wall Street, resulting in a steep drop in the stock market, The ISM’s new orders index for the manufacturing sector fell by 13.2 points, reaching 51.2 points in January, the steepest tumble since December, 1980. The JP Morgan Global Manufacturing PMI showed a small decline in January, going from 53.0 points in December to 52.9 points in January. However, anything above 50 points is a good indicator of an expanding market, albeit at a slow pace. The PMI reflects industrial production around the world, so all in all, worldwide markets appear to be in good shape.
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Global dry bulk shipping market on the upswing

23 Thursday Jan 2014

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A lackluster performance in the dry bulk shipping market in the early quarters of 2013 precipitated a gloomy forecast by the International Monetary Fund (IMF). Now, many predict that a significant improvement in the final quarter of the year is expected to produce a much more optimistic forecast for global growth from IMF economists. For instance, the South African coal shipping market strengthened considerably. A record of 70 million tons of coal was shipped out of Richards Bay Coal Terminal, topping 2012 shipments of 68.3 million tons. Australia’s iron ore shipments finished out the year at 317.9 million tons, up considerably from 2012’s total of 249.7 million tons.