June 2020
17-June-2020
Capesize freight rates jumped to $19,036 per day on Wednesday. Capesize spot markets are no longer being fixed at loss-making levels. Baltic Dry Index (BDI) passed the 1,000-point mark for the first time in 2020. A standard capesize bulk carrier requires around $9,000 per day to break-even on an operating cash flow basis and around $14,000 daily on a free cash flow basis, after deducting regular debt repayments. Brazilian mining giant Vale’s iron ore export has returned to the market after mining stoppages due to coronavirus lockdowns and heavy rains. Baltic Dry Index (BDI) July 5TC contracts closed at $22,266 daily. Baltic Dry Index (BDI) Panamax contracts are also increased essentially due to the movement in the capesize market rather than any underlying factors.
4-June-2020
Baltic Dry Index (BDI) increased to, supported by a more robust capesize spot market. In May 2020, the Baltic Dry Index (BDI) reached the lowest level reported for that period in 20 years. However, BIMCO predicts that dry bulk markets will survive at gloomy levels for the remainder of 2020. According to BIMCO, there will be a vital decrease in demand in the dry bulk market in 2020, as well as extraordinary supply-side overcapacity as seen in 2016. After the global financial crisis in 2008, the Chinese financial incentive rescued the dry bulk market. However, 2020 will not be the same recovery. Capesize bulk carriers earnings were appraised at $6,177 per day. Capesize bulk carriers in the spot market back above the estimated daily operating expenditure of $5,019, excluding bunker costs.
13-May-2020
On 13 May 2020, Baltic Exchange Capesize Index fell to -17 from 123 on 12 May 2020. Capesize bulk carriers weighted TCE (Time Charter Equivalent) plunged to $2,082 per day. Capesize bulk carrier rates plunged due to coronavirus pandemic. On 20 April 2020, Capesize bulk carriers weighted TCE (Time Charter Equivalent) reached $10,081 per day. Capesize bulk carrier earnings have dropped over the past few weeks from last month’s high of $10,081 per day achieved on 20 April. However, demand for capesize bulk carriers diminished due to low cargo supply in both the Atlantic and Pacific basin. Capesize bulk carriers weighted TCE (Time Charter Equivalent) plunged to $1,873 on the Brazil-China route. Capesize bulk carriers Australia-China leg dived to $3.57 per metric tonne. Except for supramax bulk carriers, all dry bulk shipping market nosedived.