The Baltic Dry Index added 36 points on Friday to reach 1332, just a few points of its 2017 peak which was reached last spring.
With the BDI now trading at its highest level in five months, the 2017 record will likely be surpassed next week with all of the BDI ships showing resilience. On Friday, the capesize index climbed 7.2%, boosted by strong activity levels in the North Atlantic market, the report says. The capesize index is trading just above $19,000, and analysts expect that it will test $20,000 in the coming weeks. That alone could be enough to propel the BDI to a new record for 2017.
The panamax index climbed 2.8% and the supramax and handysize boats were also higher. The panamax index managed to turn higher this week after falling into oversold territory in the prior week, and gains should accelerate in the coming weeks as we are about a month away from the panamax’s peak demand season.
The panamax market has already benefitted from increased demand to ship coal. Thermal coal shipping should continue through the remainder of the year to support increased use during winter in the Northern Hemisphere. Then, next month soft commodity shipping demand should pick up as harvest seasons starts.
For now, it is not a matter of if, but when the BDI will reach a new high for the year, with it quite likely that it will be next week with strong demand for all component ships in most basins, and expectations for a further acceleration.
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Source: Economic Calendar
