Seeking Alpha

Capesize rates plunge 27.5% overnight, dry bulk shippers slide

Capesize dry bulk shipping rates have declined in every session so far in 2014 and were slammed overnight, tanking 27.5% (or -$6,606) to $17,452/day.

The overall Baltic Dry Index dropped 11% to 1,512; panamax rates fell 1.5% to $12,921/day, and supramax rates rose 0.2% to $12,448/day.

In early trade: SBLK -2.9%, DRYS -5.1%, DSX -2.5%, GNK -5%, NM -4.3%, PRGN -3.6%, NMM -1.2%, SB -5.4%, EGLE -2.3%, BALT -3.1%.

Comments (10)
  • Quoth the Raven
    , contributor
    Comments (2129) | Send Message
    You heard it here first:
    10 Jan 2014, 10:08 AM Reply Like
  • fanebrp
    , contributor
    Comments (278) | Send Message
    As usual... QwR is misguided. She's a guesser.
    12 Jan 2014, 01:21 AM Reply Like
  • Kindly Dr Dave
    , contributor
    Comments (45) | Send Message
    This comment is seriously wrong headed and not factual. If you check the link to Dry Ships Inc, you'll see avg rates are double a year ago and do not fluctuate 27.5% in any single day.
    10 Jan 2014, 10:49 AM Reply Like
  • Steve24038
    , contributor
    Comment (1) | Send Message
    According to the Dry Ships website, the baltic cape size index dropped from 24058 on 1/9/14 to 17452 on 1/10/12. That is a drop of 6606 in one day. Expressed as a fraction, it is 27.5% (6606/24058).
    13 Jan 2014, 12:00 AM Reply Like
  • rijensen
    , contributor
    Comments (1589) | Send Message
    I hate these flash reports, no matter how obviously screwed up they are most people won't dig deeper. This is what creates buying opportunities. I'm going to monitor this and look for a bottom and buy in. One week of the BDI means one week, nothing more nothing less. Capesize are more volatile by about 5X because of the cargo capability. And all of this means nothing if the vessels are on contract and not on the spot market. Listen to Raven (claims to be first) his advice was to sell a week off of the highs (yes everyone SHOULD have know $5 wouldn't hold) and that timing would have cost you 18%.
    10 Jan 2014, 12:13 PM Reply Like
  • fanebrp
    , contributor
    Comments (278) | Send Message
    QwR doesn't even deserve a reply.... and she has NO investments.
    12 Jan 2014, 01:25 AM Reply Like
  • 166649
    , contributor
    Comments (397) | Send Message
    FRO is an oil Tanker.....Oil Tanker Day rates are up a lot ...FRO has 14 Supramax tankers among other tanker...ALL OIL...The BDI gauges the DRY BULK shippers. FRO dos not belon on this list!!


    Oil tanker rates have more than doubled for the Suezmax


    strongly improved rate picture for Suezmax spot tankers... Below are
    the rates as quoted by Fearnleys Shipbrokers January 9 - yesterday...


    Market estimates for five different routes January 9, 2014:


    130 KT - WAFR/USG $57,500 West Africa / US Gulf
    130 KT - WAFR/USAC $59,500 West Africa /US Atlantic Coast
    135 KT - BSEA/UKCM $76,500 Black Sea / UK/Continent
    130 KT - CROSS MED $76,500 Cross Mediterranean
    130 KT - MED/USG $55,500 Mediterranean/US Gulf


    Break even operating costs for these tankers are approximately 12,000 a day! These oil tankers are just starting up
    10 Jan 2014, 12:34 PM Reply Like
  • James Bjorkman
    , contributor
    Comments (2131) | Send Message
    We were talking about the risks in and they still apply. The BDI is notoriously fickle and the Chinese New Year approaches, and George is famous for pulling these stunts. Those of us with experience of this stock sounded the alarm, but when a mo-mo gets going, people lose all sense of reason.
    10 Jan 2014, 07:04 PM Reply Like
  • fanebrp
    , contributor
    Comments (278) | Send Message
    12 Jan 2014, 01:26 AM Reply Like
  • starcorral
    , contributor
    Comments (972) | Send Message
    Wow - when I read this I asked myself if all the research I've done to build a position in NMM was ill guided. I figured this might be bovine excrement but I will do more reading; I'm too busy watching Criminal Mind reruns at present.
    12 Jan 2014, 01:38 AM Reply Like
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