LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities advanced on Wednesday after weeks of losses driven 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 03 points to 821 points on Wednesday.
While on Wednesday the BDI did break a long losing streak, the upside was limited with the index adding only 3 points to reach 821.
There is little reason to expect any significant upside for the BDI for the next few months. The best case scenario would be for the BDI to trade sideways during the summer when shipping demand retreats.