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Thursday, 03 March 16
BDI FURTHER STRENGTHENING; THE INCREASE IN RATES WAS NOT SUBSTANTIAL
PanamaxCOALspot.com: The BDI closed off on a positive note for a second week in a row, further strengthening the belief that the market might be bottoming somewhere around current levels. Once again, the increase in rates was not substantial but it seems that -with the exception of Capes - the market is on its way to regain some of its lost balance back, Intermodal says.

The Baltic Dry Index has strengthened by another 3 point day on day and as of 2 March the index was at 335 points. However, the market reports indicated that, the spot time charter average for Capes were still at around US$ 2,291 a day, while Panamaxes were at around US$ 2,920 a day. Cape spot time charter average declined around 53.98% year on year, while Panamaxes fell 36.72% from the same period last year.

According to Intermodal, Owners of smaller sizes, despite the fact that they still have to operate in an extremely challenging environment appear to have shaken off the extreme pressure that had mounted during the past weeks and should the market keep steadying in the following days, we expect t finally see the fist positive effects on sentiment. For the bigger sizes of course, the silver linings remain scarce.

The Intermodal ship broker further noted that, an Improving psychology will most certainly not be enough in this instance, as not adequate demand to balance the supply of tonnage remains well in place. Extended scrapping is needed to last longer, while further laying up activity might also need to intensify for a positive reversal to take place faster.

It is hard to write about the Capesize segment without sounding too pessimistic, but the continuously disappointing performance of the market is not leaving much space for optimism, while the improvement of the rest of the market remains the once thing Cape owners could benefit from at the moment, the broker commended in its latest weekly report.

An overall steady Panamax market might not have given owners much to celebrate for but at least it reaffirmed that the market is steadying, The ECSA remained the place where most action was talking place, dictating earnings across both basins.

Commenting on the geared sizes, the broker indicated that, the geared sizes did well last week, considering this market that is, with Supras benefiting from busy Atlantics as well as Pacific coal cargoes that were coming in plenty.

Handy size rates also enjoyed small upticks across most routes providing a much needed breath to owners, Intermodal conclude.


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