“Day Of Disbelief” In Dry Bulk Market – FIS

[Dow Jones] Baltic Dry Index fall has gathered pace with Capesize average spot rates falling 29% to 5-year lows at $13,070/day yesterday and freight rates falling across all vessel classes in all regions. Freight derivatives broker FIS describes it as “day of disbelief” as BDI drops 10.7% to 1,615; but notes that further out dates on forward curve were steadier despite weakness in spot. “Although the nearby took a big hit, Cape paper (Forward Freight Agreements or FFAs) seemed fairly resilient on the deferreds despite the devastating losses on the index. The talk of zero seems more possible if we carry on like this, leaving bottom picking a risky business.” BDI index has dropped 86.3% from peak in May. (JAC)