MID-SHIP Report: Dry Bulk Freight Market – Feb 9, 2024

February 9, 2024

The past week unfolded with a subdued tone, attributed in part to the anticipation surrounding the Lunar New Year and Carnival celebrations. However, amidst this calm, significant events have transpired, notably the targeted strikes on Houthi targets in response to ongoing attacks on shipping in the Red Sea and Gulf of Aden and resulting increases in cargo and vessel insurance, as well as ships electing the longer round the cape voyage. Additionally, the Biden administration’s decision regarding General License 44 for Venezuela has stirred interest in the industry.

The Baltic Exchange freight futures forward assessments signal a 33 to 35.5% increase in rates in the second quarter compared to current spot rates in each size category. Time will tell if these assessments are accurate.

While we are experiencing the expected mild seasonal pause in market levels (rates remain firm in historical terms), we maintain our view rates will rebound nicely in the second quarter and remain firm for the year’s balance.

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