In a typical year, Q3 is usually the strongest (and if not, a strong) quarter for the dry bulk shipping sector. Not in 2022.
Funny thing, the smaller vessel categories are not hurting the Baltic Dry Index (BDI). It is the largest category, the Capesize vessels and its associated index, BCI (Baltic Cape Index), that is pulling down the BDI.
The BCI was at lowest levels in several years, levels where the spot rates do not cover operating costs.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $1,382 to $3,887.
Yet, that’s still below operating cost.
Main culprit is likely China and iron ore imports. But, maybe the changes in grain shipments and more coal for winter will change things in Q4