Dry Bulk Market: Bearish Sentiment Prevails Once Again

Nov 08, 2019 at 10:02 AM CST
The dry bulk market seems to be settling down to yet another bearish period, after third quarter’s rebound. In its latest weekly report, shipbroker Allied Shipbroking noted that “with the dry bulk market having shown a gradual downward correction over the past couple of weeks, a gradual pessimism seems to be creeping back into the market. Yet, when you look at the numbers a bit more closely it seems as though the market has been plagued by a bearish outlook for some time now, while few seem to have been convinced by the impressive market rally during late summer and the impressive 10- year high peak in freight rates noted during early September. In fact, given that we are still seeing average freight rate figures for Capesize bulkers still holding at levels well above the US$ 24,500 per day mark (a level which is well above US$ 5,000 per day more than the highest level seen during the final quarter of 2018) one would expect sentiment to be considerably more bullish than it currently is”.

Nov 08, 2019 at 10:02 AM CST

The dry bulk market seems to be settling down to yet another bearish period, after third quarter’s rebound. In its latest weekly report, shipbroker Allied Shipbroking noted that “with the dry bulk market having shown a gradual downward correction over the past couple of weeks, a gradual pessimism seems to be creeping back into the market. Yet, when you look at the numbers a bit more closely it seems as though the market has been plagued by a bearish outlook for some time now, while few seem to have been convinced by the impressive market rally during late summer and the impressive 10- year high peak in freight rates noted during early September. In fact, given that we are still seeing average freight rate figures for Capesize bulkers still holding at levels well above the US$ 24,500 per day mark (a level which is well above US$ 5,000 per day more than the highest level seen during the final quarter of 2018) one would expect sentiment to be considerably more bullish than it currently is”.