Main sea freight index at Baltic Exchange declines further to 1222 points
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities has declined further to 1222 points on Wednesday mainly due to lower cape, panamax and supramax indices.
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 27 points to 1222 points on Wednesday.
Prior to the BDI’s turn lower, the capesize index was on a tear, increasing by 176 percent since July 10. The capesize ascent was fueled by demand from China for raw materials as companies move to increase their industrial production ahead of the government’s crackdown on emissions later in the year.
As the government moves to prevent smog from cloaking the skies in the winter as thermal coal burning peaks, it will target emissions from other industries. In preparation, companies are ramping up their production right now, and this is demanding a constant supply of raw materials.