The Baltic Dry Index recovered by 18% over the past four weeks but that headline figure masks the true state[ds_preview] of the market. The only vessel class benefiting from higher rates is capesize bulkers.
A revival of iron ore chartering activity ex Brazil and – to some extent – by South Africa pushed time charter earnings for 180,000 dwt ships back above $10,000, but only for a brief moment.
By the time HANSA goes to press, levels were down to 8,500 $/day, which is still 123% better than four weeks ago. Panamaxes also staged a bit of a recovery on the back of grain business on the East Coast of South America, however for all the smaller geared bulkers spot earnings collapsed. Handies suffered the worst market since 2016 as business across the Atlantic dwindled while the Pacific continued to be even worse, further depressed by the lockdowns in India and South Africa.
The multipurpose/heavy lifter segment faced massive pressure, too. The Toepfer Multipurpose Index for F-type 12,500 dwt ships dropped by 5% to 6,863 $/day in April – its first reading below 7,000 $ after two years.
Plenty of breakbulk parcel cargoes are getting cancelled these days, disrupting voyage operations for carriers. Spot/prompt vessel positions 1-2 weeks ahead have surged, according to brokers, forcing operators to renegotiate charter rates or redeliver ships. Although waiting and commercial off-hire times have increased, more or less all mpp vessels still get employed, as single time charter trips continue getting fixed in greater numbers, market insiders report.
The European shortsea market also took a hit as business disruptions across Europe weighed down on cargo flows. »Freights are collapsing in every corner of the market«, commented market research firm BMTI. The European Short Sea Index fell by 13% month-on-month (22 April). After a prolonged period of stability, the North European routes suffered the steepest drop. The average freight rate for 3,000 t stems from the Baltic states to the ARA region dived by 25% to just 19 €/t since end of March, according to BMTI.
