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AMIS Market Monitor

last release: July 2018

Ocean freights

The dry bulk freight market extended a firmer trend in June, the Baltic Dry Index (BDI) climbing by 4 percent m/m on gains in the grains and oilseeds carrying segments. Similar to the previous month, trends were two-sided as initial gains contrasted with a more recent retreat, partly linked to holidays in Asia and concerns about escalating trade disputes. With annual gains in all sectors reflecting a more balanced market, the BDI was up 57 percent y/y.

Improved sentiment in the Atlantic contributed to stronger Panamax values for transatlantic trips and voyages from South America in the earlier part of the month. While gains were subsequently trimmed on increased tonnage availability in the north, forward activity in the south remained brisk, with average Baltic sub-Index values up by 12 percent m/m.

In a similar two-sided fashion, Supramax and Handysize earnings improved fractionally m/m. Overall support stemmed from a decent volume of inter-Atlantic fixtures out of South America, as well as busy trading at the US Gulf and in the Pacific. Europe was generally subdued, with a short supply of vessels countered by slack demand, mainly limited to occasional scrap and fertilizer deliveries.