Dry Bulk Insight: BDI likely to stabalise
Drewry expects the Baltic Dry Index (BDI) movements to moderate in September on the back of steady grain, minor bulk and coal trades. However, the iron ore trade is likely to lose its momentum in coming months.
The BDI continued its rollercoaster ride into August first falling then rising in the second half of the month. Nevertheless, this progress failed to improve the overall picture, and the average BDI declined by 34 points to reach 673 points.
Time charter rates improved in August for almost all segments except for Panamax vessels, although the demand for imported coal was high in China.
On the supply side, in spite of a decline in the number of vessels delivered, the fleet expanded moderately because of a drop in demolitions.
The newbuilding market remained in hiatus, as no new order was placed with any shipyard. However, the secondhand market remained active but failed to push prices up.