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Thursday, 05 February 15
BDI HAS NOW FALLEN A LEVEL CLOSE TO THE INDEX'S HISTORIC LOW - INTERMODAL

They say a picture is worth a thousand words and in this instance just one look at the tables above is enough to understand the great pressure the Dry Bulk market remains under, Intermodal commented their weekly market review.

The BDI has now fallen to below 600 points, a level close to the index's historic low and one that leaves very little hope that the market could witness a significant rebound before the end of the first quarter. Intermodal further noted that, in regards to the following weeks we expect further down-ward pressure as owners ballasting in the East will most probably accept further discounts in order to “avoid” fixing in an even quieter market during the Chinese New Year holidays season.

The Greece based broker Intermodal  noted that, rates for Capes succumbed to the pressure that started building up at the end of the week prior and quickly gave up a significant portion of the recently upside gained. Enquiry in both the Atlantic and Pacific remains very quiet while market talk that there are signs of the majors slowly returning back into action have not been confirmed so far.

Both rates and activity continue to soften in the Panamax segment as well. NoPac rounds were still very short in supply at the end of last week, while more frequent cargoes to India were providing some support to rates in the region. The Atlantic Panamax has at the same time seen numbers well be-low $ 4,000/day with further discounts being noted in the period market as well.

Atlantic Handy/Handy max/Supra business is still facing very low rates with light activity persisting for yet another week, while the market in the Far East is currently paying slightly better numbers, although we don’t expect the resistance there to hold much further, Intermodal concluded.



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