UNITED KINGDOM July 19 2017 1:21 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities gained further to 932 points on Tuesday mainly due to higher cape, panamax and supramax indices.
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 20 points to 932 points on Tuesday.
The BDI has been volatile so far this summer, swinging between gains and losses amid changing demand expectations. This volatility, although unnerving at times, is a slightly positive signal.
Usually, in the summer it is all downside for the BDI as seaborne trade activity slows as part of the seasonal lull. With the BDI posting a fragile recovery since its recent slump, and hire rates hovering barely in breakeven territory, the fact that the BDI has not gone through too big of a sell-off this summer is good news.