Baltic Dry Index rises but market remains fragile

However, gains were likely to be modest until stronger demand, especially for iron ore, pick up in the fourth quarter.

The BDI rose 1.71%, or 32 points, to 1901 points in a ninth session of gains.

This followed a fall over 35 straight sessions, which was the longest consecutive slide since 1995.

Brokers said the gains had been buoyed by freight derivatives contract buying in recent days.

“The BDI continues to rise, but the market is fragile,” Arctic Securities analyst Erik Nikolai Stavseth said.

“There is still little to rejoice (over) for capesize owners.”

The Baltic’s capesize index rose 3.09% yesterday with average capesize earnings rising to US$13,579 a day.

“Despite the recent 10% uptick in the BDI, continued weakness in the iron ore and coal trades are preventing any substantial dry bulk earnings growth, particularly in the capesize vessels,” Deutsche Bank said in a note.

The Baltic’s panamax index rose 2.41% with panamax average daily earnings at US$20,138 while the supramax index remained flat.