Baltic Dry Index decreased due to low activity in Capesize sector

Last week, Baltic freight index decreased 33 points or 2.87% amounting to 1117 points. Low activity in the large-capacity transportation sector Capesize became the main bearish driver for Baltic Dry Index, reports UkrAgroConsult.

Last week Capesize Index lost 8.8% that was the main blow for Baltic Freight Index. The decline was triggered by low activity on the main trade routes of iron ore from Brazil/Australia to China.

Despite the forecasts of ship brokers, the downward trend in the Panamax sector continued. The delivery cost of Panamax lots of agricultural commodities from the US Gulf ports to China increased, while on Brazil-China route the cost grew. Active grain trade in South America may become an additional incentive for Baltic Dry Index strengthening next month.

Source: UKRAGROCONSULT