 has recovered since the start of November due to stronger capesize freight rates, but the index is still down 10% y/y. ){kind=link}
“The Baltic Dry Index (BDI) has recovered since the start of November due to stronger capesize freight rates, but the index is still down 10% y/y. The capesize market has benefited from a 1% increase in shipments so far in November compared to October 2024 and November 2023. However, the increase has not been enough to recover to the highs seen during the first three quarters of 2024,” says Filipe Gouveia, Shipping Analyst at BIMCO.
On November 19, 2024, the BDI reached 1,627 points, up from 1,374 on 4 November. Before then, the index had gradually fallen since the end of September due to weaker capesize shipments. The capesize segment accounts for 40% of the BDI and therefore, changes in this market significantly impact the index.
Currently, the BDI is down 10% y/y despite a 4% y/y increase in the Baltic Capesize Index (BCI), as other segments continue to underperform. The BDI and BCI indices were much stronger during the first three quarters of 2024 when they rose by 41% y/y and 94% y/y respectively.
“This weakening in capesize spot rates has negatively impacted market sentiment. Since the start of October, one year time charter rates have fallen by 7%, while prices for five-year-old second hand capesizes have decreased by 2%,” says…