UNITED KINGDOM June 15 2017 4:13 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities declined to 865 points on Wednesday led by lower cape 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, dropped by 5 points to 870 points on Wednesday.
Capesize ships transport mainly iron ore and coal, and right now analysts are trying to gauge the level of demand for the seaborne transport of these materials as we enter their seasonal, low-demand period. Recently, the BDI’s momentum has largely tracked swings in capesize hire rates.
The BDI has been under pressure amid the expectation that demand from China would fall as the country’s massive infrastructure spending programs wind down. While this has been the expectation, and there has been some weak economic data to support this sentiment, so far the country’s imports of raw materials have held up fairly strong.