Baltic Dry Index will probably continue its downward trend

25.05.2017

Last week Baltic Dry Index lost 55 points to 957 points. The bearish factors in the world market of sea cargo transportation pressured the Baltic Exchange Indices. It is expected that the downward trend will continue in coming weeks, reports UkrAgroConsult.

Over the period under review, BDI lost 5.4%. Panamax Index decreased the most - by 11%. Panamax-type vessels were mainly engaged in grain and coal shipping, and the lack of sufficient cargo base in the Atlantic region forced ship owners to lower the rates.

Despite the reduction of Baltic Dry Index, shipbuilding companies were receiving more and more orders for new bulk carriers construction. The availability of excessive tonnage affected the market and increased competition, which caused freight rates reduction. However, in the first quarter of 2017 the deadweight of vessels for scrap was much lower than last year. All this indicates the development of new problems in maritime trade market.

 

UkrAgroConsult

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