Freight Market Jumps
The Baltic Dry Index jumped 15% yesterday as the number of idled cape-sizes fell to almost zero.
A sudden pick-up in export interest from the Far East for everything from grain to iron ore, as credit lines clear, is being linked to a rapid tightening of freight.
The BDI fell as low as 663 early December, a fall of almost 95% from it's May high of 11,793.
Yesterday the Index closed at 1,316 posting a 70% gain since the turn of the year.
Yesterday the freight rate for cape-size vessels was quoted at $21,810 per day, compared with a level of only $2,000-$2,500 per day in December.
“Letters of credit of some important banks are now being accepted. Besides, that demand from China and Brazil has improved,” said one ship owner.
A sudden pick-up in export interest from the Far East for everything from grain to iron ore, as credit lines clear, is being linked to a rapid tightening of freight.
The BDI fell as low as 663 early December, a fall of almost 95% from it's May high of 11,793.
Yesterday the Index closed at 1,316 posting a 70% gain since the turn of the year.
Yesterday the freight rate for cape-size vessels was quoted at $21,810 per day, compared with a level of only $2,000-$2,500 per day in December.
“Letters of credit of some important banks are now being accepted. Besides, that demand from China and Brazil has improved,” said one ship owner.
