LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities continued to decline on Tuesday led by a drop in cape and panamax 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 by another 08 points to 1,232 points on Tuesday.
The Baltic Dry Index, which indicates the cost of moving major raw materials by sea, hit a 15-month high last week. The index has risen four times from the lows it hit in February this year.
Apart from a low base effect, the improvement in demand for bulk commodities has led to its rise. Iron ore restocking in China is said to have pushed the rates higher as well.