Baltic Dry Index remained almost unchanged during last week due to holidays in Asia and Europe
During last week, Baltic freight index gained 1 point or 0.1%, reaching 1376 points. The period of stagnation in all segments of shipping is explained by holidays in Europe and Asia, reports analyst of UkrAgroConsult.
Capesize Index, a key sector influencing Baltic freight index, showed volatility. If at the beginning of reporting week, large-tonnage transportation market was in a depressed condition, then by the week-end the situation had changed. According to shipbrokers Clarksons Platou, the recent decline of activity in Capesize market was noted against the backdrop of holidays in various countries of the East. Panamax Index lost 6 points and fell by almost 0.5% to 1266 points, brokers note low trading activity in the South Atlantic, reports freight analyst of UkrAgroConsult.
According to Allied Shipbrokers, high demand for iron ore was the main growth driver for the Capesize sector. Iron ore stocks in China keep falling, which adds optimism about the demand for transportation of this type of raw materials. At the same time, it seems that geopolitical trade tension that has arisen between the United States of America and China has more detrimental effect on remaining smaller shipping segments. At present, Baltic Dry Index undergoes a period of high volatility and uncertainty.
UkrAgroConsult’s freight analyst indicated that during previous two weeks Baltic Dry Index had a bullish tendency because of sharp increase in Capesize Index. It grew by 38% and became the main driver for Baltic Dry Index.