Friday, November 13, 2009

Baltic Dry Index Continues to Rally

Chinese Demand Driving Recovery
Shipping News Feature

LONDON - The Baltic Exchange’s Dry Index (BDI), which charts shipping rates for various dry and bulk commodities, jumped 5.5 per cent on Thursday to 3,954 points as the strong demand for iron ore and coal from China continues.

The index has been slowly recovering since it crashed to its all time low of 663 in December 2008 and has surged 32.4 per cent over the past two weeks alone.

There is also reportedly a greater interest for charters extending for several months rather than just for single voyages, as has been the case generally for this year. This suggests that shippers are confident that demand will remain stable over the fourth quarter of this year.

Reports also suggest that the new strength of rates in the Pacific is beginning to affect the Atlantic route rates as well, welcome news to shipping lines that have languished in the doldrums this year.