Baltic Dry Index continued growing for the second consecutive week

04.05.2018

Last week Baltic freight index increased by 174 points or 14.49%, reaching 1375 points. During the second consecutive week, BDI showed an intensive growth due to the sector of large-capacity carriages Capesize, reports UkrAgroConsult.

Capesize Index grew by more than 38%, which was the main driver of Baltic Dry Index recovery, due to which BDI grew to the December 2017 level. Panamax Index lost 35 points. The situation with Panamax deliveries in the south of Atlantic remained tense for ship owners.

According to brokers, at least 35-40 bulk carriers of Panamax type struggled for South American grain transportation, while the number of cargo offers remained relatively low.

UkrAgroConsult notes that in the previous week Baltic freight index sharply increased by 174 points (20.95%) reaching 1201 points. The reason was – price growth in the large tonnage Capesize-type vessels supported by higher exports if iron ore from South America to China.

Baltic Exchange reported that it was developing two new indices, one of which should track grain deliveries. The grain index, which the company plans to launch this year will become a tradable instrument that allows investors to take a position according to freight rates in future, known as forward freight agreements or FFAs.

It is reported that such large grain traders as the US companies Cargill, Archer Daniels Midland, Bunge and Chinese COFCO International were consultants on the development of a new grain index.

Detailed information on freight market developments is available to subscribers for weekly market report "Black Sea Grain" and "Online market review" by UkrAgroConsult.

 

UkrAgroConsult

Readers choice: TOP-5 articles of the month by UkrAgroConsult