Main sea freight index at Baltic Exchange gains further to 900 points
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities gained further to 900 points on Friday driven by higher cape, panamax and supramax 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, advanced by another 12 points to 900 points on Friday.
The BDI has been volatile so far this summer, swinging between gains and losses amid changing demand expectations. This volatility, although unnerving at times, is a slightly positive signal.
Usually, in the summer it is all downside for the BDI as seaborne trade activity slows as part of the seasonal lull. With the BDI posting a fragile recovery since its recent slump, and hire rates hovering barely in breakeven territory, the fact that the BDI has not gone through too big of a sell-off this summer is good news.