Baltic Exchange’s Dry Bulk Sea Freight Index Falls To Five Months Low

The Baltic Exchange’s dry bulk sea freight index extended it’s losing streak to five straight sessions Wednesday. The BDI fell 161 points or 6.2% to its lowest level in more than five months. On June 8th the index was at 2,430. Rates slipped across all vessel segments.

Panamax Vessel

The BDI is a composite of and factors in rates for Capesize, Panamax and Supramax Timecharter Averages. It is reported around the world as a proxy for dry bulk shipping stocks as well as a general shipping market bellwether.

There a number of negative catalysts stemming from the climate and supply crisis stifling demand. We are seeing easing congestion at Chinese ports and thin coal cargo flows out of the Pacific are weighing on capesizes, shipbroker Intermodal said in a weekly note dated Tuesday.

With China striving to ease it’s energy crisis by limiting steel production to limit industrial power usage China’s iron ore futures have dropped for four straight sessions by Wednesday. Portside inventory of iron ore has swollen to the highest level in 31 months. China is the world’s top steel producer and their restrictions have crushed demand. for iron ore.

BDI Nov 17 2021

Baltic Exchange Dry Index (BDI) Segments (Nov 17 2021)

  • Baltic Exchange’s dry bulk sea freight index dropped 161 points, or 6.2% – the most in two weeks – to its lowest since June 8 at 2,430 points.
  • The capesize index shed 319 points, or 9.4%, to its lowest since early June at 3,064.
  • Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell $2,653 to $25,406.
  • The panamax index fell 200 points, or 7.5%, to a seven-month trough of 2,475.
  • Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, decreased by $1,795 to $22,277.
  • The supramax index, for smaller vessel segments lost 3 points to 2,260.

What are the Baltic indices?

From The Baltic Exchange

The Baltic indices are based on assessments of the cost of transporting various bulk cargoes, both wet (eg crude oil and oil products),dry (eg coal and iron ore), gas (LNG and LPG) made by leading shipbroking houses located around the world on a per tonne and daily hire basis. The information is collated and published by the Baltic Exchange. We also provide daily container market assessments in collaboration with Freightos and a weekly air freight index as well as assessments on vessel operating costs, Sale & Purchase and vessel recycling prices. 

The principal dry cargo indices are: the Baltic Exchange Capesize Index (BCI); Baltic Exchange Panamax Index (BPI);  the Baltic Exchange Supramax Index (BSI); and the Baltic Exchange Handysize index (BHSI). The Baltic Exchange Dry Index (BDI) is calculated by taking the timecharter components of the Baltic’s capesize, panamax and supramax indices. 

The Baltic Exchange International Tanker Routes (BITR) reports on international oil routes and makes up the Baltic Exchange Dirty Tanker Index (BDTI) and the Baltic Exchange Clean Tanker Index (BCTI). 

We cover the gas markets through our LNG (BLNG) and LPG (BLPG) assessments. 

Shipping investors are able to assess the health of vessel earnings through our quarterly operating expenses assessments, as well as our weekly Sale & Purchase and Recycling assessments. 

Forward curves for all listed freight contracts are also published on a daily basis.

Source: The Baltic Exchange

From The TradersCommunity US Research Desk