The dry bulk freight market: Just treading water?

A decade has passed since the 2008 dry bulk freight rates began a long downturn which coincided with the Financial Crisis and culminated with a historic low in January 2016. And while many are encouraged by the rebound since then, a cursory look at the Baltic Dry Bulk Index (BDI) indicates how serious the collapse was and how modest and fragile the recovery is. Not only has the dry bulk market not returned to pre-collapse levels, it’s struggling to maintain freight rates last seen in the previous millennium. Consider that in 1999 the BDI averaged 1,338. While it managed to breach the 1,500 mark briefly in late-2017, it is, for the most part, hovering below 1999 levels. Rather than a recovery then, this seems more like “a back to the future” scenario. Either way, dry bulk owners and operators are just happy to be able to operate their businesses profitably. So how does the bulk sector in 2018 really measure up to conditions in 1999? The numbers tell all: while the total capacity of the global fleet of bulk ships has more than tripled from 264 million dwt to 817 million dwt by Q1 2018, bulkers haven’t been as productive,… continue reading

Continue reading The dry bulk freight market: Just treading water?. This article appeared first on CTRM Center.

Source: CTRM Center

Related Posts

Leave a reply