It’s been a good couple of weeks for dry bulk shipping, last week Panamax earnings hit decade highs of over $22,000 per day. This week it’s the turn of the Supramaxes to make headlines as they too hit decade highs.
Supramax spot rates reached $20,000 per day for the first time since 2010. The Baltic Supramax Index (BSI) jumped by over $7,200 per day since the beginning of the month (February) and earnings have more than tripled compared to the same period last year (2020). The BSI is beginning 2021 by having its own mini renaissance after hitting a four year low in 2020 where it averaged $8,173 per day as we wrote in our Supramax RSA Annual Summary. The market has been bolstered by strong flows of grain cargoes, congestion at several key ports and high coal demand amid unusually low winter temperatures in the northern hemisphere.
Carlos Pena our Chief Commercial Officer had this to say on the current developments in the market “Minor bulk ships are back, these first couple of months we have finally seen rates above breakeven for many owners, allowing them to have a better outlook for the years to come. Volumes of cargoes are being well supported and the supply of ships is under control, we are probably at the beginning of a new cycle leaving behind rates that were below sustainable levels. The signs for the months to come are positive, the grain season in the ECSA is around the corner and the end of the COVID-19 pandemic is getting ever closer, with countries around the world enacting far reaching vaccine programs. Global growth estimations for the next 12-24 months are positive, all in all we are seeing a much more positive environment that I personally believe is good for all the players in the industry. I’m sure all the people working on dry bulk market are happier to trade their cargoes, ships or derivatives at healthier levels. At CTM we will keep working to maximise our clients’ revenues and improve our service to charterers with the same positive spirit that we have always had in the past and invite owners to stick together look for consolidation and control of their ships, 2021 just started.”
C TRANSPORT MARITIME S.A.M. (CTM) is a highly qualified and experienced vessel management company primarily in the dry cargo ocean transportation industry. Established in Monaco in 2004, the company has strong Greek and Italian shipping roots that reach back over a century. CTM currently manages a fleet of over 200 dry cargo vessels at any point in time in the Handymax up to Capesize segments.