Shipping market "busy season" BDI fall thousand points

Author:Ricky
Release Date:2014-12-10

This month, is considered a barometer of the economy and international tradeLeading indicators of the Baltic Dry Index (BDI) fell thousand points, to December 8 has dropped 952 points, compared to 10 at the end of 1428 fell 33.34 percent point. Reporter since 2008 compared to December of BDI trend discovery, now the figure has dropped to six-year low in December.

By convention, the fourth quarter is the traditional peak season should the international shipping market. Because affected by seasonal factors, the winter demand for coal will be lifted or other factors, BDI index, or show a rising trend. But this year is not the case.

12 losing streak since early October fell 930 points, BDI index rose finally ushered in the October 17, ended November 4, BDI total rose 554 points to 1484 points. That time, insiders told reporters that the BDI index rose is not a trend, but the recovery of the shipping industry is yet to come.

For the BDI declined to re-enter the stage, analysts said that coal and iron ore as well as shipping status. One agency, told reporters, as usual, some mills may have to replenish stocks in the fourth quarter. "After this wave up, demand will be less, mainly imports iron ore and coal. Now it is winter, South America and other places food is basically finished out."

The industry believes that the current downstream coal demand is still weak, coupled with the beginning of large-scale coal enterprises to further price adjustment, resulting in lower power plants and traders sentiment increased. Coastal coal transportation market demand is difficult to have signs of improvement, tariffs pressure drop. In an environment of global economic recovery is weak, BDI fell not unexpected, and its expression meaning out of the industry is not so big.

An industry source pointed out that, compared to the dry bulk market, the situation is set relatively better transport and tanker. According to its said that tankers will continue to enjoy the two-year period up because supply growth continued to decline in 2015, although the 2016 supply growth picked up, but mainly in the second half. Cargo, the Cargo supply and demand growth in 2015 will double up as a balanced market, freight rates are expected to remain stable.

Investment Advisor in the transportation industry researcher Cai Jianming told reporters that the current recovery in the shipping industry in line with expectations, no shipping market continues to deteriorate, the situation is getting better profit aviation enterprises. From the point of view of production capacity, supply and demand, while still, but gradually eased. In this context, the recovery of the shipping industry is not far off, a large aviation enterprises is expected to become the first beneficiaries.