UNITED KINGDOM June 29 2017 1:04 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities climbed further to 929 points on Wednesday thanks to highar cape 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 26 points to 929 points on Wednesday.
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.