LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities continued to stay below 900 points on Friday as subdued shipping activity finally impacted hire rates.
The Baltic Dry Index, which provides an assessment of the price of moving the major raw materials – such as coal, iron ore and grain – by sea by taking in 23 shipping routes measured on a time charter basis, down further by 08 points to 892 points on Friday.
Shippers commented that early in the week, shipping activity was surprisingly quiet, and although there were cargoes ready for transport across the Pacific, few deals were actually conducted.
This is likely behind the fall apart of hire rates and the BDI value and could continue to pressure the BDI as the week continues. There have been no indications of an increase in activity.