BDI Reaches New High in 2016

first_imgzoom As the dry bulk market is currently experiencing a slight recovery, the Baltic Dry Index (BDI) jumped by 13 points and reached 500 points on April 6, marking the highest level so far in 2016.The Capesize index was up by 11 points reaching 477, the Panamax index was up by 23 points hitting 619, while the Supramax index increased by 3 points, resulting in 482 points.Average daily earnings for Capesizes and Panamaxes were up by USD 187 and USD 180, amounting to USD 4,027 and USD 4,940, respectively, while the average daily earnings for Supramaxes increased by USD 32 to USD 5,036.The increases come on the back of last month‘s BDI threshold of over 400, after the dry bulk industry staged a come back following BDI’s plunge to a record low of 298 points seen at the beginning of February.In an attempt to deal with overcapacity in the sector, dry bulk owners were on a demolition spree during the first quarter of 2016, according to data from Clarksons Research.In January and February alone, 111 dry bulk ships were scrapped, equalling 9.3 million DWT, BIMCO said.By the end of March, some 144 dry bulkers, equivalent to 11.9 DWT, were sold to scrap.Clarksons Research data shows that the average scrapping age for bulk carriers dropped from 33 years in 2007 to 24 years so far this year, however, due to the current market conditions, vessels built in the 2000s are now candidates for recycling.Despite the high scrapping trend, the current dry bulk market is still in limbo, as low demand for commodities transportation continues.Furthermore, according to VesselsValue the interest for building and ordering dry bulk ships has diminished in 2016, as shipyards believe they can earn more from constructing other types of ships.Only four vessel orders were registered in the first 12 weeks of 2016 despite 12-year low newbuilding prices offered from the shipyards, BIMCO said.World Maritime News Stafflast_img read more