The dry bulk spot market enjoyed quite a rebound. It was considered to be the best start to a calendar[ds_preview] year since 2014 following substantial improvements in the market balance helped by strong commodity flows across the minerals and grains segments and reduced newbuilding deliveries. However, the first quarter is usually challenging for the dry bulk market due to seasonal declines in iron ore flows from Australia and Brazil, so it was no surprise to see the market losing ground from week 2 onwards.
Average time charter trip earnings for capesize vessels have meanwhile dropped more than 40% below levels ahead of Christmas, while forward freight contracts for the front month (February) also recorded a 29% drop to low 11,000’s $. The panamax time charter average was reduced by 9.0% month-on-month, rates for supramaxes were more stable and even regained some strength in the middle of January, helped by a rebound in tonnage demand in the US Gulf and in North Europe.
