The Baltic dry index averaged 1,006 points in Q2 2017.
China continues to import a record amount of iron ore and if the current level of buying is sustained into the second half of the year, China’s iron ore imports will exceed last year’s record of 1.024 billion metric tons and will help mitigate the reduced Indian coal imports.
The IMO recently announced that they would delay the deadline for the implementation of ballast water management system (“BWTS deadline”) on existing ships until the first statutory docking survey after 2019 against the original deadline of September 2017. With the delay in the BWTS deadline, owners may decide to defer the scrapping of older vessels and continue trading which is not positive for the freight market.
The outlook for the oil and gas sector continues to remain depressed and the timing of recovery is uncertain. This will continue to have a negative impact on the financial performance of our associate, POSH as well as MBC.
The Board is encouraged by the improving dry bulk market but remains concerned over the depressed offshore services segment and its adverse impact on the overall MBC’s performance.