Baltic Dry Index Week 42

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.

BDI – Week 42

The 2018s fourth quarter has kicked off on a positive note for the mid-size and smaller vessel sizes, but Capes have experienced weak earnings. However, in recent days we have noticed a positive trend on the rise for the larger vessels, as Chinese appetite for iron ore and coal has been growing. We do expect a proper uptick in rates among the larger vessels in near future due to mentioned development.

The Panamax rates broke through the 5-year high this week with strong demand for soybeans and coal benefitting tonne-miles for the vessel class. Nevertheless, the rates closed slightly lower than previous week, but yet at very healthy levels for the owners. Are we going to see $20.000 during the winter? We surely hope so.

The Supramax market struggled this week and closed below $13.000 p/d on the back off a 2,5% rate fall this week. Rates just below 13k is however fairly healthy and we expect the earnings to follow the larger vessels towards higher levels within the next couple of weeks.

Weekly change: Closed at 1.576 point, down 0,19%

BCI – Baltic Capesize Index (40% of BDI)

A volatile start of the week for the larger vessels. Up on Monday, but back to start on Tuesday. On Wednesday earnings moved into negative territory; down 3,1%. Thursday pushed the rates up 2,2% mainly due to higher demand on the Austrailia – China and Brazil – China routes. This development continued Friday with a 2,4% rate surge, closing the week 1% higher week on week.

Weekly change: Closed at $18.932, up 1%

BPI – Baltic Panamax Index (30% of BDI)

Panamax continued its positive trend in the beginning of the week, 1% up on Monday and Tuesday. Wednesday provided another 0,2% uptick. Thursday was however a slightly negative day with a 0,4% fall. On Friday the Panamax market closed 0,8% lower, finishing a flat week more or less at the same level as the week before.

Weekly change: Closed at $14.217, down 0,07%

BSI – Baltic Supramax Index (30% of BDI)

A flat start of the week for the Supras, although slightly weaker rates. Nevertheless, rates kept trading above the 13k mark by market close on Tuesday. On Wednesday the earnings broke through the 13k mark, down 0,4%. This development continued Thursday down another 0,7%, and Friday down 0,9% bringing the rates down $331 from last week.

Weekly change: Closed at $12.771, down 2,53%