Baltic Dry Index Week 45

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 45

It was another tough week for the bulkers, experiencing lower demand for iron ore and coal in China and India. This has a major impact on the freight market, however it is expected to change within few weeks. A cold winter is expected, which should drive demand for coal especially. Historically the market spikes by late November towards year end / Chinese New Year.

Weekly change: Closed at 1.147 points, down 21,3% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

The average Capesize earnings continued to ease Monday, down 3,5%. The development continued Tuesday; down 4,1%. Wednesday was a dark day for Cape owners; down 12,2%. Thursday confirmed the correction with another deep fall; down 11,2%. Friday concluded the negative week down 41,6% w-o-w.

Weekly change: Closed at $11.250, down 41,6% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

There were signs of improvement by the end of last week. However, these signs didn’t make a big impact during the first day this week. Rates closed 0,1% above Fridays close. Tuesday the rate slipped down 0,3%. The steep earnings fall for Capes pushed the Panamax rates 1,1% lower on Wednesday, and another 1% on Thursday. Fairly flat end of the week, w-o-w change of -2,3%.

Weekly change: Closed at $11.975, down 3,3% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

Supramax rates were under pressure on Monday, with average rates trading 1% lower, and continued to slide Tuesday down another 0,8%. The Supra earnings fell another 1,1% on Wednesday and 0,7% on Thursday. The week concluded at -4,57%.

Weekly change: Closed at $11.254, down 5,57% w-o-w.