The dry bulk market has been devastating so far in 2015. However, June has somehow reversed it all in less than three weeks if judged by the Baltic Dry Index (BDI).
Earnings for both crude oil and oil product tankers continues to go from strength to strength. Overall, the lower crude oil prices are supporting refinery margins. This accelerates crude oil throughput and increases demand for transportation of feedstock to the refineries as well as transportation of the refined oil products thereafter.
The market conditions are devastating and volume growth in 2015 on key trades is negative. The lack of coal imports into China is taking centre stage, and lost volumes are difficult to make up elsewhere.
The demand situation is developing a tad slower than what the market had anticipated. After the expected dip around Chinese New Year (February), volumes have failed to pick up markedly.
The global macroeconomic scene has become more volatile, with prominent factors such as oil prices and global currencies causing a commotion.