Baltic Dry Index (BDI) slid by 1.13% to 2,366 points on Wednesday, due to low shipping activities.
The dip may be partly due to correction in Capesize rates, which saw the time charter average to drop by $481 on-day to $35,183 on Wednesday, and down by $938 since Monday’s rate of $36,121.
Slowdown for both basins
The choppy ride of Capesize paper market was due to slowing shipping activities on both the Pacific and Atlantic basins at the start of week.
Apparently, BHP and FMG were the only miners with cargoes for voyages to China, while others were less active in fixing for cargoes earlier this week.
However, the shipping activities began to pick up on Wednesday out of west coast Australia, where more mining majors entered the market with cargoes.
Despite these enquiries, the shipowners were in no hurry to fix and dropped their rates to negotiate for better deals with the miners.
Softening rates for smaller vessels
Due to the corrections of Capesize rates, Panamax paper market was rangebound for most of the week with little supports.
By Wednesday, the Panamax time charter average recorded at $17,171, down $144 on-day and down $385 since Monday’s rate at $17,556.
Smaller vessels did not benefit much from the slowing Capesize rates as well, as the Supramax time charter average posted $14,794 on Wednesday, down $89 on-day, while Handysize booked a slight gain of $2 to $10,067.