Capesize period rates have fallen to the lowest levels seen in over two years, such lows were last seen in January 2017 when at one point the average one-year TC rate for capes was estimated at a low of $9,600 pdpr.
Whilst this time of year is traditionally slow for dry bulk markets, the sentiment has been further amplified in the short-term by news last month of the dam break at Vale’s iron ore mine in south eastern Brazil.
In terms of number of ships, the orderbook to fleet ratio currently stands at 12% in terms of number of vessels and in terms of dwt this figure rises to 13%.
The US has imposed sanctions on state owned Venezuelan oil company PDVSA in a move that prevents Venezuelan president Nicholas Maduro benefitting from revenues from US crude that he needs in order to cling to power.
As the BDI falls to its lowest levels in almost two years, is this merely a seasonal lull or is this the sign of things to come for 2019 in the dry bulk markets?
Once again scrubbers are the topic of conversation thanks to recent news that some countries will ban the use of open loop scrubbers.
