Bulk carrier rates show maximum weekly growth in four months

The Baltic Dry Index, which tracks prices for sea transportation of dry bulk and dry bulk cargo around the world, showed the highest weekly growth since mid-August.

The value of the indicator by Friday, December 3, added 14.6% in weekly terms and amounted to 3171 points. Freight rates for dry cargo vessels increased across all ship segments.

The Freight Index for Capesize vessels increased over the week by 17.6% to 4595 points, the highest growth since the end of October. The average daily revenue of capesize operators reached $ 38.1 thousand.

The Panamax Freight Index for the week rose to its highest mid-March 19.3% and reached 3128 points. The average daily revenue of vessels of this class reached $ 28.15 thousand.

In the supermax segment, the index rose 1.2% to 2431, the highest in a month.

At the end of September, the Baltic Dry Index soared to its highest level in 13 years – 4962 points. In October, a rate correction began in this segment .

The Baltic Dry Index is used as a tool for assessing international business activity. It reflects the cost of transporting bulk and bulk cargo (ore, grain, etc.) by sea along the main significant trade routes for bulk carriers of various sizes – capesize, panamax and supermax. Based on the dynamics and values ​​of the Baltic Dry Index, it is possible to assess the business activity of the sectors of the economy that are consumers of the services of sea carriers, to analyze the state, in part, to predict the development of world trade, industry and the economy as a whole.

In September, consultancy Clarkson Research Services reported that container ship freight rates more than quadrupled since early 2021, up 128% from the previous 2005 high. The situation has become so tense that even the operators of the bulk carrier market have entered the fray, offering container shipping on their ships.

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Tags: Baltic Dry Index