Baltic Dry Index Week 46

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 46

The Chinese import disruptions has had a massive impact on the dry bulk market in recent weeks. This week was no exception. However, the market rebound seem to have started on Thursday and the optimism is ascending. The 1.000 points mark, a psychological mark, provided support and the index bounced back from 1.009 point on Wednesday. The Capesize vessels were yet again the front runner and if the rates revert to the levels from a few weeks ago the owners across the sector will be more than happy. December cannot come soon enough this year; historically a month with strong earnings.

Panamax and Supramax owners are relatively comfortable on these levels and should be good positioned for a strong winter rally.

Weekly change: Closed at 1.031 points, down 10,1% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

Capesize earnings continued the steep fall on Monday, down 4,4%. Tuesday and Wednesday were even worse correcting 13,9% and 13,8%. The explanation is lack of Chinese iron ore imports. However, on Thursday the rates spiked 5,4% on the back of 12 days consecutive fall. Friday was another good day with rates raising 4,1%. The two last days provided some hope to the ship owners that the sentiment has turned and that the coming week will bring stronger earnings.

Weekly change: Closed at $8.804, down 18,1% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

Despite the weak development for both Cape and Supra earnings, the Panamax rates moved sideways on Monday. While the other sectors experienced diving rates, the Panamax earnings increased by 0,1% on Tuesday. Wednesday was fairly flat, and Thursday ended 1,2% lower. Earnings fell another 0,9% on Friday ending the week in negative territory. However, considering the weak overall development in the market, the Panamax vessels has been relatively stable.

Weekly change: Closed at $11.662, down 2,67% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

Monday was the toughest day in ages for the Supramax owners with a 7% rate fall. Although more modest, the earnings kept falling 0,6% on Tuesday. Wednesday provided better earnings but fell 0,9% yet again on Thursday. Earnings were slightly lifted on Friday; up 0,1%.

Weekly change: Closed at $10.731, down 1,78% w-o-w.