UNITED KINGDOM August 08 2017 1:45 PM
LONDON (Scrap Register): The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities has continues to advance to 1036 points level on Monday mainly on rising 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, gained by another 04 points to 1034 points on Monday.
The fact is the classic ability of the BDI to predict economic movement was ruined due to a change in the market’s supply situation.
Shipbuilders were too ambitious during the last economic expansion cycle. They planned many new builds, assuming that economic growth would continue exponentially.