UNITED KINGDOM April 15 2016 3:38 PM

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities shot up to 596 points on Thursday supported primarily by stronger demand for capesize 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, up by another 30 point to 596 points on Thursday.

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 February 10 2016, when the index plummeted to 290 points.

After touching a record high of 11,793 point high in September 2008, the Baltic Dry Index crashed during the Great Recession, with losses accelerating even after the global economy started to recover. This was because during the economic growth cycle that preceded the recession, ship builders starting constructing new vessels to keep up with growing demand.