Thursday Dry Bulk Update:
The Panamax comeback--- the Capes softening--- how about them handies.
Looking over the rate assessments out of London today, we note the BPI T/C has overtaken the BSI T/C. The economics of scale imply the larger Panamax should earn more than the smaller Soups and Handies. The realities of the market are often quite different and far more complicated than simply the bigger is better concept. Case in point, the Soups have outperformed the larger assets over the last five years. The Supramax class, originally designed to maximize the service to a number of Japanese ports has found its versatility both in size and self-geared capacity to be extremely valuable in the current trade routes. An old shipowner friend of mine once told me “those with the gear shall persevere” and we would be remiss not to mention the geared handies. For a closer look at the BHSI, we recommend reading a recent article authored by dryship & chartering broker Jerome Sorrel. We really like this brokers honesty, and the knowledge he shares on his blog and twitter. Jerome reminds me of another honest broker named John Cotzias (except for the beard), and we surely miss our contact with John.
Today the broader index (BDI) falls almost 3% as the Cape collapse overwhelms the smaller asset gains. The paper market (FFA) on Capes for November broke resistance at $9K and is now trading at $8,600.
Cape 4 T/C ~$9,500 down 1100
Cape 5 T/C ~$10,125 down 1100
BPI4 T/C ~$7,240 up 150
BSI T/C ~$7,225 up 85
BHSI T/C ~$6,180 up 50
Jerome Sorrel dryship & chartering broker-
twitter jerome sorrel @jeromesorrel