The Baltic Dry Index (BDI) jumped by 26 points and reached 1,257 points on November 18, marking its highest level so far in 2016 amid a strong recovery in the dry bulk market over the last month.
The Capesize index was up by 21 points reaching 2,752, the Panamax index was up by 35 points to 1,388, while the Supramax index increased by 61 points, resulting in 809 points.
While the average daily earnings for Capesizes dropped by USD 151 to USD 19,364, the earnings for Panamaxes increased by USD 279 to USD 11,074.The Supramax earnings increased by USD 638 to USD 8,456.
Compared to the same period a year ago, the average daily earnings were up from USD 5,211, USD 3,696 and USD 4,934 for Capesizes, Panamaxes and Supramaxes, respectively.
The latest rise comes only a week after the BDI hit the 1,000 point mark as vessel values started to firm, but not at the same rate and are still at historically low levels, according to VesselsValue.
On February 10, 2016, the BDI fell to its record low of 290 points due to a weak demand for commodities.
During the last 12 months, contrarian owners have taken advantage of the low values and have been buying cheap tonnage. This looks to have paid off with many values having increased above the purchase price.
A report released by VesselsValue has identified the five biggest dry bulk spenders which are turning the current state of the market into a financial opportunity. These include Greek Anangel Maritime Services Inc, London-based Zodiac Maritime, Singapore’s Winning Shipping, German Oldendorff Carriers and Denmark-headquartered Celsius Shipping.
Namely, in January 2016 Anangel purchased seven Capes, including four resales from Star Bulk and three 1-year-old vessels from Scorpio Bulkers, at USD 247 million, for which the current market value is USD 230 million.
Zodiac Maritime was buying steadily throughout 2015 and closed the year off with a mammoth acquisition from Scorpio. Following two purchases in December 2015 and March 2016, Zodiac began scrapping. After a spend of USD 246 million, new additions to the fleet have a value of USD 235 million, according to VesselsValue.
Winning started the year by scrapping some of their older tonnage as the rates and asset prices slumped and focused on buying throughout the rest of 2016. Winning has grown its fleet by 49% with a spend of USD 197 million. The current value of acquisitions is USD 192 million.
Oldendorff’s purchases have predominantly been distressed transactions and cheap Chinese ships adding good value to the acquisitions. The company spent USD 181 million and the acquisitions now have a value of USD 216 million, a 19% increase in asset prices.
After the dry bulk crash Celsius developed an appetite for Chinese-built, modern ships, snapping up a number of resales, many direct from the yards including Huangpu and Yangfan Zhoushan. Over the course of 2016 the company spent USD 167 million on acquisitions, which now have a market value of USD 196 million, representing a rise of 17% in values.
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