Today the Baltic Capesize index jumped almost 1200 points or 18% to 7724. This has pulled the broader Baltic Dry Index up 11.5% in one day to 4106. 4,000 on the BDI has been indexes’ average for the free-trade China era. This is good news for the dry bulk shipping companies.
The continued runup in dry bulk shipping rates causes me to question the wisdom of Genco Shipping signing their new Capesize vessel to a 2 year contract at $36,000 per day less commissions. (Press release linked above). My reading shows a BCI at this level means spot charters for Capesize vessels are well above $60k per day. The good news is that GNK has only 64% charter coverage for the remainder of 2009, so they should be able to pick up some nice revenues if the BCI stays at this level or continues to increase.
Things are looking good for the dry bulk shippers!
Baltic Capesize Index goes ballistic!
Genco Shipping and Trading Limited – Press Release.
Today the Baltic Capesize index jumped almost 1200 points or 18% to 7724. This has pulled the broader Baltic Dry Index up 11.5% in one day to 4106. 4,000 on the BDI has been indexes’ average for the free-trade China era. This is good news for the dry bulk shipping companies.
The continued runup in dry bulk shipping rates causes me to question the wisdom of Genco Shipping signing their new Capesize vessel to a 2 year contract at $36,000 per day less commissions. (Press release linked above). My reading shows a BCI at this level means spot charters for Capesize vessels are well above $60k per day. The good news is that GNK has only 64% charter coverage for the remainder of 2009, so they should be able to pick up some nice revenues if the BCI stays at this level or continues to increase.
Things are looking good for the dry bulk shippers!