BIMCO’s “Shipping Number of the Week” highlights the recent recovery of the Baltic Dry Index (BDI) in November. This indicates an uptick in global shipping activity, particularly in the dry bulk sector, according to Safety4sea.
Rise In Shipments
Filipe Gouveia explained that while the Baltic Dry Index (BDI) has improved since the beginning of November due to stronger capesize freight rates, it remains 10% lower year-on-year. He noted that the Capesize market has seen a 1% rise in shipments in November compared to both October 2024 and November 2023, but this increase has been insufficient to reach the peaks recorded during the first three quarters of 2024.
On 19 November 2024, the BDI reached 1,627 points, up from 1,374 on 4 November. Before then, the index had gradually fallen since the end of September due to weaker Capesize shipments. The capesize segment accounts for 40% of the BDI and therefore, changes in this market significantly impact the index.
Currently, the BDI is down 10% y/y despite a 4% y/y increase in the Baltic Capesize Index (BCI), as other segments continue to underperform. The BDI and BCI indices were much stronger during the first three quarters of 2024 when they rose by 41% y/y and 94% y/y respectively.
However, while the capesize market is not as strong as it was during the first three quarters of 2024, it is still stronger than in November 2023. The supply/demand balance has marginally tightened as supply only grew by 3% y/y. The segment has benefited from low deliveries, keeping supply down even as congestion eased.
Did you Subscribe to our daily newsletter?
It’s Free Click here to Subscribe!
Source: BIMCO
