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.