UNITED STATES June 05 2017 1:39 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities tumbled to 830 points on Friday led by further decline in 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, down by another 20 points to 830 points on Friday.
With the BDI considered a leading economic indicator, this may seem like a sign that the global economy is slowing down, but this is not necessarily a reflection of an impending long-term slowdown in the global economy but instead a typical seasonal development.
The BDI experiences seasonality. Its value peaks in the spring and again in the fall as countries around the world stockpile materials for their peak summer and winter demand periods.