LOW EARNING PROSPECTS TO BLIGHT FFA RATES

摘要

As the BDI fell in May, traders lost their confidence in the dry bulk market – evident in the downward revision in FFA rates for all segments. Paper trading also fell by 3%. Panamax FFA rates declined by about 25% . Moreover, only 47,000 Panamax contracts were traded against 53,000 contracts in April. Meanwhile, the shaky demand from China and India is expected to affect Panamax earnings. Nonetheless, long-term confidence is still intact as commodity trade is likely to strengthen by end-2017.