Baltic Dry Index Continues to Fall

Yesterday BDI went as low as 1480! Please see the diagram to the right.

While Clarkson Plc, the world’s biggest shipbroker, expects seaborne trade in the two cargoes to exceed 2 billion metric tons for the first time this year, the 7 percent increase won’t be enough to eliminate a glut. About 200 capesizes, spanning some 35 miles end-to-end, will leave shipyards this year, expanding the fleet by 18 percent, the Bloomberg survey showed.

“In 2010 the market was able to to take a hit from about 200 Capesizes and a notable large amount of smaller vessels delivered,” according to Erik Nikolai Stavseth, an analyst at Arctic Securities ASA.

The big question is whether the market will be able to take another hit from a huge amount of deliveries entering the market this year? Judging form the recent development of the BDI it doesn’t look good!

Source and full story: Bloomberg