Baltic Dry Index: 2017 – year of freight rate growth

05.01.2018

When Baltic Freight Index set an anti-record at 290 points in February 2016, the global bulk shipping market began to improve gradually. During the last trading session of 2017, BDI settled at 1366 points, which looks much more impressive than 961 points over the same period in 2016. Since July, the cost of transportation of almost all types of dry bulk cargo has increased, and Baltic freight index grew to its high over the last 4 years. 

This rally was dictated by China's insatiable appetite for imports of commodities, primarily coal and iron ore, which resulted in an unprecedented increase in Capesize large-capacity vessels’ index. According to Clarkson Research Services Ltd, in 2017 world iron ore and coal shipments grew by 5.3% to 2.69 billion tons, and about a half of this volume was supplied to China, reports UkrAgroConsult.

The global increase in freight rates has not bypassed grain shipping sector.

Full version of the article is available to subscribers for weekly market report “Black Sea Grain” and “Online market review” by UkrAgroConsult.

 

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