Baltic Dry Index Week 49

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 49

It seems that the dry bulk markets have stabilized after the week November market. Capesize earnings kept front-running also this week and the Panamax earnings closed slightly lower than the week before. However, Supramax earnings closed more than 1% higher. We believe that the market is now setting up for a winter rally, as we see higher demand in the coming weeks. Nevertheless, the picture is a bit blurry as we have seen fast changes on the demand side recently.

It is worth pointing out that despite the recent lows, Panamax rates has held up pretty good and earnings were held above break even levels for most owners. This is a sign of strength in our view, as previous years had several periods where owners had to cover part of the OPEX.

Weekly change: Closed at 1.372 points, up 11,45% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

Capesize earnings came under pressure Wednesday last week, a development that continued in the beginning of this week with earnings dropping 5,4%. However, rates soared 5,9% on Tuesday, 10,7% on Wednesday and 8% on Thursday. The week concluded at 5,63% higher rates, bringing the w-o-w development up

Weekly change: Closed at $17.478, up 26,51% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

Despite the sliding earnings among the larger bulkers the Panamax earnings kept soaring on Monday up 0,4% and continued another 0,4% on Tuesday. By Wednesday the development flattened, and the earnings fell 0,14%. Thursday the market raised 0,07% but fell 0,27% on Friday.

Weekly change: Closed at $11.684, down 0,08% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

Supramax rates hiked slightly 0,2% on Monday and 0,5% on Tuesday. The development slowed down Wednesday, like the Panamax sector, and earnings raised 0,1% both Wednesday and Thursday. Friday provided another small hike, with rates soaring 0,21%.

Weekly change: Closed at $10.740, up 1,11% w-o-w.