Baltic Dry Index Week 50

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 50

All in all, a good week for the market with increasing rates across sectors. The week kicked off on a positive note. However, Tuesday and Wednesday sent the market into negative territory. Thursday and Friday pushed the freight market higher. We are now approaching year end, with a development most analysts did not foresee. The freight market in Q4 was considerably weaker than expected due to several issues. The US-China trade war played apart through a slowdown in the Chinese overall imports, mainly iron ore and coal. However, it seems that the bottom is behind us and we see sign of strength across the market. We do expect volatility going forward, but Q1 is in position to be a strong quarter for the dry bulk market.

Weekly change: Closed at 1.401 points, up 2,11% w-o-w.

BCI – Baltic Capesize Index (40% of BDI)

The strong momentum from last week helped push the rates 2% further on Monday. However, on Tuesday and Wednesday the earnings reverted 2,7% and 1,6%. On Thursday the earnings increased 1% and another 4,3% on Friday.

Weekly change: Closed at $17.704, up 1,29% w-o-w.

BPI – Baltic Panamax Index (30% of BDI)

A relatively slow start of the week for the Panamax earnings reverting 0,4% on Monday and 0,7% on Tuesday. On Wednesday the earnings stayed in negative territory down 0,6%. Thursday was a good day as the Panamax followed the Capesize earnings, up 1%. Friday was also a good day for the Panamax sector with a 1,3% rate gain.

Weekly change: Closed at $11.828, up 1,23% w-o-w.

BSI – Baltic Supramax Index (30% of BDI)

The Supramax earnings has been soaring slowly over the last few days and continued up another 0,2% on Monday. This continued Tuesday up another 0,3%. Wednesday’s trading sent the Supra earnings closer to the $11.000 mark, up 0,6%. Thursday provided another 0,6% increase and Friday finished the week up 0,7%.

Weekly change: Closed at $10.980, up 2,23% w-o-w.