UNITED KINGDOM December 07 2016 2:39 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities fell to 1,986 points on Tuesday mainly due to lower cape index.
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, down further by 10 points to 1,186 points on Tuesday.
The BDI’s ascent has garnered extra steam since the election of Donald Trump as the next president of the United States. Trump’s economic policies include increased infrastructure spending, which will boost raw material demand from the world’s largest economy.
These raw materials will need to be shipped into the US, and this could provide a welcome boost to the BDI, which is still well off of its record high of 11,793 points in 2008.