UNITED KINGDOM March 14 2016 3:35 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities rose by nearly 100 points in a month.
The Baltic Dry Index has now maintained its upward march for a full month, reaching 388 on Friday from its all-time low of 290 a month ago, as news surfaced that Chinese shipping giants, China COSCO Shipping Corporation Limited (China COSCO Shipping), China Merchants Group, and ICBC Financial Leasing Co., Ltd. (ICBC Financial Leasing), have purchased 30 Valemax vessels amid market overcapacity.
Some market players are reported to believe that positive news out of China's iron ore market over the last eight weeks may continue to support a continued positive trend for the BDI, citing the positive demand results in that market coming at a usually slow time of year in China.
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 Wednesday, February 10 2016, when the index plummeted to 290 points.