Baltic Dry Index Week 41

BDI – Baltic Dry Index

The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange that measures 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.

Despite the dreadful start for the Capes, the global production of iron ore pushed the rates up at the end of the week. This development is expected to continue as Chinese appetite for materials is picking up. The Panamax class had the best week among bulkers due to high demands for coal and soya beans from Atlantic to Far East. Supramax earnings were the least volatile sector as usual, closing almost 1% up.

All in all, a good week for the bulker market.

Weekly change: Closed at 1.579 point, down 2,8%

BCI – Baltic Capesize Index (40% of BDI)

Capesize started the week on a negative note with a 1,9% rate fall. Tuesday the rates continued to slide, down 3,8%. The downward correction continued Wednesday with another 1,6% rate drop. In other words: a pretty slow start of the week. However, the market sentiment turned on Thursday with 2,8% rate surge. Friday was a surprisingly good day with rates increasing 9%(!).

Weekly change: Closed at $18.746, up 2,16%

BPI – Baltic Panamax Index (30% of BDI)

Panamax was the strongest vessel class on Monday with a 1,3% rate gain, closing above $14.000; a new high on this side of the summer. On Tuesday the development was relatively flat, down 0,1%. Wednesday closed another 0,1% lower. After a few flat days the rates raised 0,8% on Thursday, and 0,7% on Friday.

Weekly change: Closed at $14.227, up 4,65%

BSI – Baltic Supramax Index (30% of BDI)

Monday brought Supramax earnings above $13.000 with a 0,3% surge, which continued Tuesday up 0,2%. The slightly positive development continued Wednesday with a 0,1% hike, and another 0,2% on Thursday. Friday concluded the week with 0,3% lower rates, but up week-on-week.

Weekly change: Closed at $13.102, up 0,94%