KUALALUMPUR (April 17): MIDF Research has maintained Negative on the shipping sector and said the Baltic Dry Index (BDI) had slumped to a 3-year low of 647 points on Feb 3, 2012.
In a note April 17, the research houses said that nonetheless, the benchmark for dry commodities freight rate had since gradually ascended to 976 points, and is trending upward towards 1,000 points.
“Despite its recent recovery, the BDI is still about -37% below its last year average of 1,549 points. The average capesize TCE/day rate improved +23.8% mom to USD 7,080, hitting the breakeven range of USD7,000 – 8,000.
“However, we opine that further major rebound in freight rate is unlikely to occur in the near term hence we maintain our negative view on the shipping sector,” said MIDF Research.
In a note April 17, the research houses said that nonetheless, the benchmark for dry commodities freight rate had since gradually ascended to 976 points, and is trending upward towards 1,000 points.
“Despite its recent recovery, the BDI is still about -37% below its last year average of 1,549 points. The average capesize TCE/day rate improved +23.8% mom to USD 7,080, hitting the breakeven range of USD7,000 – 8,000.
“However, we opine that further major rebound in freight rate is unlikely to occur in the near term hence we maintain our negative view on the shipping sector,” said MIDF Research.
