Dry bulk market keeps gains, but demand seen modest say analysts

The dry bulk market has been on the upside so far into the week, with the Baltic Dry Index (BDI) rising once more yesterday to reach 1,281 points, up by 1.51% on the day. The leader of the day, in terms of gains, was the “forgotten” Capesize market,which was up by 1.75%, but still lagging from both the Supramax and the Panamax segments. According to Fearnley’s latest report, commenting on the Capesize market, “two months into 2011 and we see the full effect of the sad reality describing the cape market. Last week bunker prices made a big jump, resulting in slightly improved rates but even more ships at anchor. West Australia round is presently between USD 6.50 and 7 pmt, whilst fronthaul remaining steady around low USD 18. A lack of cargoes around and more tonnage coming sugesting the present poor mkt to continue for some time” said the shipbroker.
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Source: Hellenic Shipping News