Shipping index jumps by 11.6%
- By Chris Flood in London , Financial Times, 2 Jun 2009
The Baltic Dry index, the benchmark for freight costs for iron ore, coal and grains, jumped 11.6 per cent on Tuesday, its 22nd consecutive day of gains, propelled by a big increase in the number of ships waiting at ports in China and Australia. (no ships! :p2)
The increase took the index to 4,106 points, its highest since September.
The number of vessels waiting at Australia's Newcastle coal loading terminal has risen to 43, the highest for six months. An estimated 70 to 80 Capesized vessels, the largest of the fleet, are waiting to unload iron ore at Chinese ports.
This congestion has pushed the BDI up 230 per cent since its latest rally started in late April. The rise has fuelled hopes that the global economy is on track for a rapid recovery.
But delays in delivering large numbers of dry bulk ships ordered for this year has helped tighten the market. Barclays Capital said this trend could reverse and drag freight rates lower later this year and in 2010.
Also see: Driven By Iron Core, Congestion And Lack Of Ships BDI Soars To 3164
walao! then how?
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