The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange that measures the change in the cost of transporting various raw materials. The exchange directly contacts shipping brokers to assess price levels for a given route, a product to transport and time to delivery, or speed. The index consists of the Capesize index (BCI), Panamax index (BPI) and Supramax index (BSI), all created by Baltic Exchange.
It was yet another negative week, primarily driven by the low demand for Capesize vessels. A major factor for the recent development is the strong US Dollar compared to currencies in Asian Emerging Markets. More expensive commodities equal lower activity, but would normally stabilize within a few weeks. Hopefully, next week will provide some positivity for the Capesize owners. The other sectors seem to be fairly stable.
Weekly change: Closed at 1.366 point, down8,32%
BCI – Baltic Capesize Index (40% of BDI)
Capesize continued to front-run the downward trend on Monday with a 1,6% fall. Tuesday was a terrible day with a 6,2% fall. The development continued on Wednesday, down 3,9%. Thursday did not provide the needed break and ended down 3,8%, and neither did Friday, down another 2,3%.
Weekly change: Closed at$15.574down 15,82%
BPI – Baltic Panamax Index (30% of BDI)
The week started where the previous ended; up 1,1% on Monday. A 0,8% rate hike on Tuesday, but fell 0,4% on Wednesday. Thursday removed the previous gains this week with a 1% fall, which continued on Friday with a 0,7% fall.
Weekly change: Closed at$12.219, down 0,23%
BSI – Baltic Supramax Index (30% of BDI)
The positive trend continued Monday with a 0,2% rate hike. Tuesday was pretty flat with a 0,1% retrogression but surged 0,8 % on Wednesday. On Thursday the earnings fell 1%. Friday was a flat day with a 0,2% rate hike.
Weekly change: Closed at $12.250, up 0,25%