Baltic Dry Index Week 47

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 47  

The first part of the week was challenging, especially for the Capes with slowing demand on iron ore imports in China. High quality iron ore from Brazil and Australia has been traded to China at record levels so far in 2018. However, early this week different reports stated that this growth was about to turn. Nevertheless, this might just have been a rumor as Capesize rates went through the roof towards the end of the week, reportedly on higher demand from China.

The mid-size bulkers have managed to maintain relatively solid earnings through this weak period, and it is lots of optimism among the owners as soon as Cape rates reach a profitable level. This should bring a spillover effect on the other vessel classes.

Weekly change: Closed at 1.093 points, up 6% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

A 0,9% rate fall on Monday was followed with another 4,4% fall on Tuesday. The 2 first days of the week sent the Cape earnings to the lowest among bulkers, even Handysize earned more. Nevertheless, a turning point was seen on Wednesday with a 3,4% gain. This continued Thursday with another 3,8% gain. The Cape owners got a massive boost on Friday, with earnings flying 21,3% higher, bringing rates just below $11.000.

Weekly change: Closed at $10.853, up 23,27% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

The Panamax market started on a negative note with a 1,1% fall which continued Tuesday with another 1,5% fall. Panamax failed to follow the Capes on Wednesday, continued the correction down 1,7%. This continued Thursday with another 1% fall. The falling trend slowed down on Friday supported by the booming Cape rates. However, Panamax rates fell 0,2%, but with the recent lift in rates among Capes, the optimism is raising among owners across vessel classes.

Weekly change: Closed at $10.996, down 5,71% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

Supramax earnings were fairly flat on Monday, down 0,2%. The mid-sized bulker was the only segment with positive development on Tuesday; up 0,1%. However, on Wednesday the earnings went back down 0,1% and continued Thursday down 0,2%. Friday closed 0,1% below Thursday, ending w-o-w down 0,69%.

Weekly change: Closed at $10.657, down 0,69% w-o-w.