Baltic Dry Index to Rebound in April

It seems that the worst is finally over for the bulker owners as the Baltic Dry Index (BDI) is expected to recover in April with stagnant supply and rising demand for vessels.

According to UK-based shipping consultancy Drewry, supply is expected to slow down with a decline in newbuilding activity and a rise in demolition, in addition to conversions of dry bulk vessels into tankers.

Drewry expects the demand for grain, thermal coal and petcoke to improve. The signs of market improvement are already on the horizon with improved freight rates in March.

Earnings for all segments went up, except Capesize, whose earnings declined as China restricted its iron ore imports to comply with environmental regulations and to protect local producers.

Capesize shipowners and charterers have been unable to recover their operating costs, as they opted to idle their vessels rather than trading at a loss. Coal and grain trade also improved, Drewry’s data shows, with a rise in demand for thermal coal from India and improved employment opportunities for Panamaxes and smaller vessels in Japan.

However, according to Drewry, the outlook for iron ore trade remains grim for the next month with no signs of any major overhaul in the trade pattern.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Oct 2019 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

CruiseConnect Global 2019

Attend CrewConnect Global and stay on for the CruiseConnect Summit to take part in an industry-wide conversation focused…

read more >

CEDA Dredging Days 2019

CEDA Dredging Days programme will follow its successful format of contributed peer-reviewed…

read more >

Offshore Wind Europe 2019

#OWEU19 is a meeting place for governments, developers and suppliers to grow the confidence in wind power. Perfect to grow your business by securing new customers, meeting officials and industry heads.

read more >

6th Mozambique Gas Summit & Exhibit

This year’s edition will have a revamped programme for attendees.

read more >