LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities has climbed to above 1300 points on Friday on higher cape, supramax 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, gained by another 36 points to 1332 points on Friday.
With the BDI now trading at its highest level in five months, the 2017 record will likely be surpassed next week with all of the BDI ships showing resilience.
On Friday, the capesize index climbed 7.2%, boosted by strong activity levels in the North Atlantic market, according to Clarksons Platou Securities.
The capesize index is trading just above $19,000, and analysts expect that it will test $20,000 in the coming weeks. That alone could be enough to propel the BDI to a new record for 2017.