Baltic Dry Index Week 44

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 44

The Drybulk market continued its correction this week, with sliding rates across all sectors. However, it is worth pointing out that this time of the year historically comes out on the weak side after a positive post-summer trend. Normally, this trend turns by mid-November and provides a rally towards year end. We do expect a similar development this year, with the strongest fundamentals we have seen in a long time.

Key reasons for a winter rally:

  • 44% of scheduled 2018 Newbuild deliveries not yet delivered. Majority of deliveries expected to be halted until 2019.
  • Strong Chinese (and Indian) demand for Coal and Iron Ore imports in winter months.
  • Weather delays pushing fleet utilization higher.

The abovementioned factors are expected to benefit mainly Capesize and Panamax sectors.

Weekly change: Closed at 1.457 points, down 4% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

The earnings firmed 1,8% on Monday and another 0,4% on Tuesday. The positive development continued throughout Wednesday. Thursday brought the rates down 2,1%. By week close the rates fell 1,5% further.

Weekly change: Closed at $18.414, down 6,5% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

Panamax rates continued to plunge Monday; down 1,7%. Further down 1,7% on Tuesday. Wednesday was fairly flat. By the end of the week the falling trend slowed down. Thursday ended up 0,1% and Friday 0,3%.

Weekly change: Closed at $12.263, down 3,3% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

The Supra earnings fell 1,2% on Monday, continued by a 1,8% fall on Tuesday. Wednesday provided a break. However, the rates continued to slide on Thursday and Friday; -1,2% and -1%.

Weekly change: Closed at $11.450, down 6,26% w-o-w.