LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities has advanced sharply to 1296 points on Thursday mainly due to higher cape and panamax 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, gained by another 46 points to 1296 points on Thursday.
So far this year the BDI peaked at 1,338 points. This value was touched during the spring restocking season, but the BDI usually reaches its highest value of the year in the fall, during the more aggressive fall restocking season.
This year, even though it is still technically summer, fall restocking started earlier in the year due to expectations that China will crack down on industrial output later in the year to reduce emissions.