UNITED KINGDOM May 15 2017 1:06 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities advanced further to 1,014 points on Friday led by higher 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, gained by another 02 points to 1014 points on Friday.
Last week Baltic Dry Index lost 130 points reaching the level of 1004 points. A 11.5% reduction was caused by the difficult situation in the world market of large-tonnage transportation. It is worth noting that BDI fell over the eleventh consecutive session and reached its two-month low.
China, which generates almost 40% of the world's marine trade, starts cutting imports for infrastructure construction. First of all, the Capesize Index is affected.
It declined by almost 19% last week. Last month the reduction in iron ore transportation volumes was noted on the main routes from Brazil and Australia to the PRC. If such dynamics continues, it threatens to further Baltic Dry Index reduction.