The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities declined further to 862 points led by weaker cape, panamax and supramax rates.
The Baltic Dry Index, which provides an assessment of the price of moving the major raw materials – such as coal, iron ore and grain – by sea by taking in 23 shipping routes measured on a time charter basis, down further by 24 points to 862 points.
While the BDI has recently been on a downward trajectory, the losses have been somewhat limited, with the index proving to be more resilient than expected.
Capesize ships typically transport iron ore and coal, and a great deal of these cargoes are destined for China. A drop-off in activity is typical right before the Chinese Lunar New Year holiday as business activity winds down.
The Chinese holiday kicks off, and during that time demand to ship goods into the country comes to a standstill. The holiday will last through February 02.
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Source: Metal, DryShips Inc.
