UNITED KINGDOM May 16 2016 2:37 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities bounced back to 600 points level on Friday due to strong cape and panamax rates.
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, advanced sharply by 21 points to 600 points on Friday.
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.
Since the BDI has staged a significant recovery. Factors that have been driving the gains include the belief that the sell-off was overdone, an increase in demand, and a decrease in ship supply due to some ship scrapping.