8th
The BDI (Baltic Dry Index) has been falling for some time now…
The BDI (Baltic Dry Index) has been falling for some time now (31 days in a row so far) and newspapers around the world have started to notice and the reports of doom and gloom in the shipping industry are filtering out. The BDI is often held up as an economic lead indicator, although this accolade is strongly contested by many economists. Whether or not you like the BDI as a lead indicator, the reality is that the dry cargo freight markets have been in free fall: you can listen to weekly podcasts on the dry cargo markets
But what exactly is the BDI?
The BDI is the ‘Baltic Dry Index’ : it is an index, produced on a daily basis, based on the assessments provided by FFABA (Freight Forward Agreement Brokers Association) member shipbrokers as to a number of key global trade routes for dry bulk cargoes.
The index is the weighted composite index based on 3 ship sizes and their respective indices: the BCI (Baltic Cape Index), BPI (Baltic Panamax Index), BSI (Baltic Supramax Index).
If you would like details of the definitions of the individual components, please contact us
If this is all double dutch to you and you’re wondering what a Capesize, Panamax and Supramax are, then why not sign up for a Free 6 day email course on Ship Types called The Daily Draft
Optimism as to the state of the dry market continues to deteriorate and derivative prices (FFA’s) registered yet another falling session on 7th July, with Capes Q3 trading down to $20,000 and Panamax Q3 down to $16,450. The Q3/Q4 spread has risen sharply to $3,500, suggesting a turn around is forecast. However, the far dated end of the curve has been suffering a deep blow as traders consider the possibility of a more sustainable trend of lower rates in the longer term. Trading levels of derivatives have been high…
Resistance levels for Capes Q3 are now : $22,500 / $25,250, with support at $17,000
Panamax Q3 resistance is $21,250 and support at $16,250 and $15,750
