UNITED KINGDOM March 15 2016 11:27 AM

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities increased further on Monday due to improved rates for panamaxes and smaller vessels. 

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, rose further by 4 points to 388 points on Monday.

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 BDI held up better in that market than it is now, as demand from China for raw materials as the country embarked upon some strategic stockpiling buoyed the index even as equities around the globe collapsed.

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.