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Wednesday, 31 August 16
THE DRY BULK MARKET MANAGED TO FIND FURTHER SUPPORT DURING THE LAST DAYS OF THE SUMMER SEASON - INTERMODAL
PanamaxThe Dry Bulk market managed to find further support during the last days of the summer season, with the BDI climbing above 700 last Friday, reaching levels last visited over a month ago.

According to Intermodal, the extended improvement, which  was particularly impressive in the case of the Capesize market, proves recently formed expectations of a stronger “back to school season” correct, while at the same time sentiment across the market appears to be steading.

Additionally, the broker further noted, we reiterate our opinion that the fact that earnings did not crash during the quiet summer months is in itself an encouraging sign that a strong bottom has been created and that a healthier remainder of the year could be well ahead if activity in key trading regions offers the expected support. As far as period business, interest remains concentrated around the smaller sizes and shorter periods,  with both charterers and  owners reluctant to commit themselves to longer contracts before a more clear view of what’s coming ahead is possible.

Despite a still very uninspiring Atlantic, the performance of the Capesize market in the East managed to support rates for the segment overall, with expectations for another positive week ahead,  while period interest remains limited.

Commenting on Panamax, Intermodal says, rates for Panamaxes were the only negative exception, as weak trading in both the USG and North Atlantic  combined with overall flat markets in South America and the East, allowed charterers to exert pressure  throughout the week.

The market for the smaller sizes remained upbeat in most key trading regions for yet another week, with the Asian market holding firmly onto its recent gains as well, while period interest was mostly concentrated around  Supramax/Ultramax tonnage.


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