Panamax trade heads for the stars.

(From Lloyds List)

Dry Trade

THE Baltic panamax index has broken the magic 6,000 mark and with rates said by brokers to be still going up the market appears headed for uncharted territory, writes Nigel Lowry.

Already last week, rates of $50,000 per day for good modern vessels were being achieved in both basin and brokers have already suggested $60,000 daily has been breached.

Paris-based Barry Rogliano Salles this week noted: 'At these levels, the biggest question is if the cargo side, including Capesplits, will be able to follow, or if the need to cover contract cargoes has pushed owners into over-bullish period arrangements.

'Up to now, the freight levels seemed sustainable, but with rates reaching these dizzy (and historic) heights, it could be that a downward adjustment becomes necessary, and might be imminent'.

A senior broker at Greek-based chartering expert Carriers, ...