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Wednesday, 28 October 15
BDI INCREASE TOOK PLACE SOLELY ON THE BACK OF CAPESIZE PERFORMANCE, BUT........ - INTERMODAL
PanamaxCOALspot.com: The Dry Bulk market closed off the week noting a small improvement  which nonetheless failed to lift sentiment, not only because the BDI increase took place solely on the back of Capesize performance but also because even in the case of Capes things could hardly inspire optimism at the moment, said Intermodal in its latest weekly report.

According to the Greece based broker Intermodal, despite the fact that the decision for the additional rate cut in China and the five-year plan to support the country’s economy on top of an even looser monetary policy are news more than welcome over at the dry bulk side it is impossible to quantify the positive effects if  “if” being the operative word here these do take place.

The broker further noted that, the China’s coking coal imports fell 12% yoy last month, with imports from Australia dipping more than 17% from August, further stressing the weakening fundamentals in the Pacific basin trade that has seen rates for bulkers struggling during the bigger part of the year.

The Cape size market showed signs of life during the first part of the week but the upward trend didn’t last long and whatever rate upside as achieved in the previous days, now seems to have completed evaporated, with a quieter market prevailing since the last week of October has kicked off.

Commenting on Panamax sector, the broker said that, It was a slow week for Panamaxes overall, with fresh inquiry still limited and rates under pressure. Some orders came out of the  USG region, levels for which are nonetheless unknown, while the strength of the ECSA has been waning, affecting both the Atlantic and Pacific business at the moment.

The Handysie/Handymax/Supramax is strongly resisting any recovery for now, while the BHSI has now fallen back to June levels, with halted grain shipments squeezing rates for the US  Gulf trip via  US Gulf or NCSA to Skaw-Passero even more.


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