The Russia-Ukraine war continues to create huge volatility in the charter markets. Capesize spot rates sank about 40% this week with many pointing the finger at disturbing economic data coming out of China that Chinese retail sales, industrial output and investment all slowed last month and failed to match economists’ expectations. This could lead to dry bulk commodities such as iron ore, steel, bauxite, and aluminium potentially seeing declining demand.
Continued Covid-19 lockdowns and a deepening property crisis have been heavily depressing business confidence — and activity. The Baltic Exchange Capesize 5TC index, which monitors spot rates across five different routes, had dropped to $7,000/day compared to $24,000/day a little over a month ago.
Prices are feeling some pressure and this week the handysize bulker MV FW ADVENTURER (34,000 DWT/Built 2019 in Japan) was sold for $28.3 million compared with the larger but two years older MV ANSAC COLUMBIA (38,000 DWT/Built 2017 in Japan) which sold in early June for $28.8 million.
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