BDI index drops as demand slows down

Monday, 21 March 2011 15:13:07 (GMT+3)   |  
       

On Friday, March 18, the Baltic Dry Index (BDI) indicated yet another decline, as slow demand exerts pressure on the maritime freight market.
 
On Friday, the Baltic Dry Index dropped by 0.13 percent from the previous day to 1,531 points, marking the fifth consecutive day of downward movement.
 
Market sources have indicated that the trends of the capesize and panamax freight market needs further observation. Iron ore and finished steel inventories in China are still high. The peak demand for thermal coal is now subsiding, while new ships are also being launched. Thus, the maritime freight market faces increased pressure.
 
In addition, Japan is a major importer of dry bulk goods such as iron ore and coal. However, due to earthquake and tsunami which hit the country on March 11, the shipping market has been negatively impacted.
 
Also on March 18, the Baltic Capesize Index (BCI) declined by 0.88 percent on the same day, with the average daily profit of capesize ships having dropped over five consecutive days, declining to $9,369. Capesize carriers usually have a carrying capacity of 150,000 mt, with iron ore and coal among the main goods transported.
 
The Baltic Panamax Index (BPI) dropped by 0.76 percent on the same day, with the average daily profit of panamax ships falling to $16,821. Panamax carriers usually have a carrying capacity of 60,000-70,000 mt, with coal and cereals among the main goods transported.

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