The Baltic Exchange's dry bulk sea freight index eased on Friday and posted its biggest monthly fall since January 2020, hurt by a decline in rates across all vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, fell 111 points, or 3.1%, to 3,519, its lowest since Aug. 12.
The index fell more than 30% this month and was down 20.2% this week.
Concerns over the health of the Chinese economy have led to a sharp decline in the dry bulk sector, which was already "exasperated due to the (China) Evergrande situation," Alibra Shipping London said
The brokerage, however, added that the outlook for the sector remained firm due to high demand for commodities.
The capesize index fell 193 points, or 4.3%, to 4,349, its lowest since Aug. 10. The index has more than halved this month.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell $1,604 to $36,065.
China's steel rebar and hot-rolled coils futures rose on Friday as the environment ministry pledged to cut concentrations of hazardous, small airborne particles known as PM2.5 over the winter, while steelmaking ingredients fell more on coal drags.
The panamax index fell 69 points, or 1.7%, to 3,896, lowest in over two weeks.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, decreased by $621 to $35,061.
The supramax index fell 86 points to 3,104, touching its lowest since Aug. 13.
(Reporting by Kavya Guduru; Editing by Shailesh Kuber and Ramakrishnan M.)
Absolutely. Maybulk doesn't have capesize. This is the reason why when BDI spike up so bullish maybulk doesn't. Anyway it is all down to whether you are an investor or a trader. If trader, you should have run much earlier. Investor will find opportunities to collect. Chill guys, maybulk up or down no one can control. So don't need to be so rude towards one another. Anyway, maybulk is just a small portion of my portfolio. Because I believe coming few QR should be great since index still remain at high side even huge correction now
It has been weeks already. The past is a past. Time to move on with better/wiser words use. I bet you both have no idea how each other looks right. So no point continue such heated argument on each other.
Chill la pang72 & dompeilee. It has been weeks still not enough of debating and attacking each other? Don't need to be so aggressive on words towards each others. Don't see any benefit of you both continuing such behaviour. Whoever that don't like maybulk can just move on to stock that you like in i3. For those that love maybulk I would like to see you guys share good info related to maybulk. I3 is a place to exchange knowledge.. Not a place to attack one another. Cyberbully should be stop immediately
Freight rates have not gone down on all routes. The decline in select routes was mostly seen on the outbound shipment from China as most of seasonal exports (for the Christmas and the New Year) are already done. With this, China's exports have slowed. So, the demand of container and logistics services has declined for outbound shipment and has hence fallen in the last three weeks. For outbound shipment from India, the freight rates remain steady, the same from Bangladesh though has gone up,” said Chintan Singhvi, Managing Partner, Pheonix Global Polymers LLP. He further added, “Outbound and inbound shipment to India remained steady and shortage of empty containers continues.” Unfortunately, the shipment between India and China remained strained with the Chinese port authorities continuing to find excuses to delay Indian cargoes. The Chinese port authorities normally cite fear of Covid spread as a major reason for a compulsory 14day of quarantine for the Indian shipping crews. Over and above this quarantine period, Indian ships are not entertained for an additional week to 10 days. This means, Indian ships seeking berth at Chinese ports take at least 22-25 days now as against 4-7 days in pre-Covid times.
The decline in global freight rates will certainly prove to be a major relief to global consumers and also the policy makers as they were struggling to deal with the momentous growth in inflation worldwide since the coronavirus (Covid – 19) pandemic spread across the world in early 2020 and disrupted global logistics services on account of lockdowns caused by the pandemic. Since the freight rates contribute a large portion to commodity prices, the increase in logistics costs elevated commodities prices and hence the global inflation proportionately in the last 17 months. "The dry bulk rates have eased a bit but continue to remain relatively high. These rates had gone up exorbitantly since the beginning of the Covid pandemic and have now started to correct. The dry bulk market will continue to remain strong in near future at least," said Rahul Bhargava, Chief Operating Officer, Essar Shipping Ports & Logistics Ltd, to Polymerupdate.
Can both of you just take one step back and don't continue such disturbing comment? Maybulk up or down is not up to you both to decide anyway. Believer will believe, haters will hate. Don't need to fight over here on things that you both can't control.
KUALA LUMPUR (March 16): Investors snapped up shares in FGV Holdings Bhd after its privatisation exercise failed due to low acceptance of the takeover offer made by its controlling shareholder the Federal Land Development Authority (Felda) at RM1.30 per share.
The stock closed 27 sen or 20.77% higher at a more than one year high of RM1.57, with 58.19 million shares changing hands, giving it a market capitalisation of RM5.73 billion.