Baltic freight index grew to the highest level over the last five months last week

18.05.2018

Baltic freight index closed the week up 77 points or 6.6%, at 1453 points. The freight index increased to its highest level over the last five months, due to high activity in the large-tonnage transportation sector, reports UkrAgroConsult.

Capesize index, which is an indicator of raw materials’ deliveries by large-capacity fleet, grew by 5.6%, that became the main driver for Baltic Dry Index growth. In April, demand from the PRC for iron ore raw materials rose to 82.92 MMT or 3.3%, compared to March. Iron ore stocks in Chinese ports increased, reaching 160 MMT as of the early May, which may affect iron ore imports to China.

No considerable changes were seen in the rest of BDI sectors. Shipbrokers note that despite high trading activity and regular requests for grain deliveries, freight rates in the region were influenced by large amount of free tonnage, forcing ship owners to reduce transportation costs.

As for May 17, Baltic freight index decreased 98 points or 6.96% reaching 1305 points.

UkrAgroConsult notes that in the previous week Baltic freight index remained almost unchanged due to holidays in Asia and Europe.

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

 

UkrAgroConsult

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