BDI freight index continues to rise Rising demand for iron ore boosts sentiment

The Baltic Sea Exchange Dry Exchange Freight Index BDI rose for the seventh consecutive trading day on Monday, boosting shipping activity due to mild iron ore demand.

The Baltic dry bulk freight index rose 2.67% or 36 points to 1,382 points.

Before falling more than a week ago, the index fell for four days in a row, and in February it touched the lowest level in two years.

“The spot price of iron ore seems to have declined in recent days and it seems to have prompted some Chinese buyers to return to the market,” said Mark Williams, research manager at brokerage company Braemar Seascope.

India last month stated that it would triple its iron ore export tariffs because it wanted to curb the majority of iron ore exports to China.

Brokers and analysts believe that (China) iron ore importers will need to purchase iron ore from other countries such as Brazil. This may mean that long-distance transport is needed, which will have a positive effect on freight rates.

The BCI price index for the Baltic Sea Cape was up 5.61%. The average daily profit of Capesize vessels rose slightly to US$6,548. Capesize vessels usually carry 150,000 tons of cargo and the cargo is mainly iron ore and coal. The Baltic Sea Panamax Freight Index BPI rose 1.61%. The average daily profit of Panamax ships rose to US$16,169. The type of ship usually carries between 6 and 70,000 tons, and the main cargo is coal and grain.