Main sea freight index at Baltic Exchange plummets to below 300 points for the first time in its history

UNITED KINGDOM February 05 2016 12:07 PM     

LONDON (Scrap Register): The main  sea freight index at Baltic Exchange for ships carrying dry bulk commodities  dropped further to below 300 points for the first time in its history as dry  shipping markets continue to weaken.

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 5 points to a historic low of 298 on  Thursday.

The Baltic indices for all dry shipping segments contracted  again today, apart from the Baltic Panamax Index (BPI). The BPI advanced five  points and was assessed at 289 on the back of busy chartering activity in the  Atlantic basin as a steady stream of cargoes comes out of South America ahead of  Chinese New Year. Intra-Asia panamax fixtures, however, have been few and far  between.

The index is based on a daily survey of agents all over the  world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit  11,793. The lowest level ever reached was on Thursday, February 04 2016, when  the index plummeted to 298 points.