The Baltic Dry Index (BDI) is a shipping and trade index created by the London-based Baltic Exchange that measures the change in the cost of transporting various raw materials. The exchange directly contacts shipping brokers to assess price levels for a given route, a product to transport and time to delivery, or speed. The index consists of the Capesize index (BCI), Panamax index (BPI) and Supramax index (BSI), all created by Baltic Exchange.
BDI – Week 43
A strong week for the Capesize earnings failed to push the index higher as the mid-size vessels dropped substantially. Especially the Panamax class struggled, down more than 10% this week. Supras wasn’t significantly better, but still in negative territory, dropping approximately $500 by the end of the week.
However, we are bullish towards the end of the year with strong demand and a tight tonnage list in major areas. The positive upswing is expected on the back of a few weak weeks in late October/ early November.
Weekly change: Closed at 1.519 point, down 3,62%
BCI – Baltic Capesize Index (40% of BDI)
The Capesize earnings kicked off the week with a 1,3% surge on Monday and continued with another 1,3% on Tuesday. Wednesday however, the arrows started pointing south – down 2,1%. By the end of the week the momentum again turned upwards with a strong Friday, up 2,2%.
Weekly change: Closed at $19.708, up 4,1%
BPI – Baltic Panamax Index (30% of BDI)
The mid-size vessels did not follow the positive momentum for the Capes and fell 1,1% on Monday. Tuesday the Panamax vessels took another hit, down 2,3%. However, earnings were still at healthy levels just below $14.000 per day. The market kept falling Wednesday yet another 2,7%, and continued towards the end of the week. By Friday afternoon the more than 10% w-o-w.
Weekly change: Closed at $12.682, down 10,79%
BSI – Baltic Supramax Index (30% of BDI)
The downward trend from last week continued on Monday; down 0,6%. This continued Tuesday with a 0,5% rate fall. Wednesday; Supra owners experienced another negative day, down 1%. Thursday and Friday wasn’t any better, pushing rates almost 4,5% lower w-o-w.
Weekly change: Closed at $12.215, down 4,35%