Freight Market Continues To Rise
The Baltic Dry Index - the benchmark guide to drybulk shipping rates on 40 routes across the world - rose 81 points, or 4.1 percent, yesterday to close at 2,055 - the index's 17th consecutive daily gain.
Demand to ship commodities such as coal, iron ore and wheat have boosted capesize vessel rates to a four-month high.
That demand is coupled with a lack of ships, as chartered vessels queue to at various ports around the world, and some lie fully laden, but idle, being used as giant floating storage containers.
There are at least 19 vessels waiting to load grain from ports in Western Australia, by far the country's biggest exporting state, according to Bloomberg. CBH Group, the state’s biggest grain handler, told customers it can’t take orders for February or March and temporarily halted April bookings, they added.
Steel production underpins demand for about half of the world’s bulk carrier fleet. What we are now seeing is improved demand from China as steel mills reopen after December shutdowns, and increased steel production in emerging markets India and Russia, experts say.
Steel makers were replenishing stock, while the results of government stimulus plans to kick start economies in China were now beginning to be felt, they added.
There could certainly be some more room on the upside for freight yet, as we are still a very long way from the index's all-time high of 11,793 set in May 2008.
Demand to ship commodities such as coal, iron ore and wheat have boosted capesize vessel rates to a four-month high.
That demand is coupled with a lack of ships, as chartered vessels queue to at various ports around the world, and some lie fully laden, but idle, being used as giant floating storage containers.
There are at least 19 vessels waiting to load grain from ports in Western Australia, by far the country's biggest exporting state, according to Bloomberg. CBH Group, the state’s biggest grain handler, told customers it can’t take orders for February or March and temporarily halted April bookings, they added.
Steel production underpins demand for about half of the world’s bulk carrier fleet. What we are now seeing is improved demand from China as steel mills reopen after December shutdowns, and increased steel production in emerging markets India and Russia, experts say.
Steel makers were replenishing stock, while the results of government stimulus plans to kick start economies in China were now beginning to be felt, they added.
There could certainly be some more room on the upside for freight yet, as we are still a very long way from the index's all-time high of 11,793 set in May 2008.
