>FREIGHT FORWARD (ICICI DIRECT)

Sailing in choppy water…

• The Baltic Dry Index (BDI) declined by 4% to 2738 level in February 2010 as against 2848 in January 2010. The decline was led by a 9% fall in the Capesize vessel index, which declined to the 3174 level

• Tanker rates corrected in February 2010 after rising for three successive months. The Dirty Tanker Index declined by 17% to 897 while the Clean Tanker Index declined by 14% to 762

• LPG freight remained flat in February 2010 except for a small decline in large sized gas carrier rates

• Utilisation level for drillship, jack-up rigs and semisubs were at 91%, 81% & 86%, respectively in February 2010

• New build asset prices showed negligible price movement. Five year old asset prices for tankers remained weak with maximum correction in Suezmax rates by 2% and MR Tanker rates by 6%. Dry bulk vessel rates firmed up marginally with a 2% rise in Capesize vessel rates

• New building orders for dry bulkers decreased from 42 to 35 vessels while that for tankers increased from 12 to 18 vessels in February 2010

• Demolition of vessels continued to be strong in February 2010 with demolition of 67 vessels. India acquired the most vessels for demolitions (35) with an average scrap price of $276 per LDT in India with global average scrap prices at $355 per LDT.

To read the full report: FREIGHT FORWARD