UNITED KINGDOM May 18 2017 2:22 PM

LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities stayed below 1,000 points on Wednesday led by lower cape, panamax and supramax 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, declined by another 20 points to 960 points on Wednesday.

While the BDI has recovered significantly since it plunged to a record low of 290 points in February 2016, the ascent has been relatively slow and prone to some abrupt changes. 

Improved demand for raw materials have pushed the BDI’s recovery over the past year, but the key shipping index still remains well below its record high of over 11,000 points. This level is a distant memory with hire rates being depressed by an abundant supply of ships.