UNITED KINGDOM July 12 2017 1:05 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities gained to 830 points on Tuesday driven by higher 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, gained by 10 points to 830 points on Tuesday.
Iron ore is primarily transported by capesize ships, and capesize hire rates have declined significantly in the recent weeks.
Come fall, there should be an increase in capesize demand and therefore hire rates, but this outlook is murky given the expected winding down of China’s massive infrastructure spending programs.