LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities rose above 900 points on Tuesday boosted by an increase 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, advanced by another 19 points to 903 points on Tuesday.
But, over the past month, it has been a wild ride with BDI rates facing pressure as the seasonal low demand period approached. Shipping demand tends to taper during summer in the Northern Hemisphere when there is less demand for many raw materials; particularly those used in building and construction as hot temperatures slow construction activity.
For this reason, rates to hire capesize ships have retreated. Capesizes, the largest of the BDI ships, transport primarily iron ore and coal.