Main sea freight index at Baltic Exchange falls further to 1134 points

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities fell further to 1134 points on Thursday driven by weakness in 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, fell by another 13 points to 1134 points on Thursday.
At 1134 points, the BDI has staged a significant recovery since falling to a record low of 290 points in February 2016. 
In order for the BDI to continue its recovery the oversupply of ships needs to be worked off, and according to BIMCO, fleet scrapping rates have started to decline.
After a long break, Baltic Dry Index, which tracks global shipping rates, has once again started to move. It had corrected almost 95 percent from the levels of 12,000 in May 2008. 
Till the middle of last year, it was hovering around 630 levels. The upward movement started this year and the Index is currently at 1200 levels.