Sustained recovery in Baltic Dry Index?

Aug. 30--The Baltic Dry Index (BDI), which tracks global shipping prices of various dry bulk cargoes, has shot up sharply in the last 42 days. The index has gone up by 60% to 2,712 points as on 27 August from its 12-month low of 1,700 seen on 15 July. This increase can be mainly attributed to higher iron ore imports to China, the world's largest iron ore consumer. Iron ore is one of the major dry bulk commodities transported through sea.The BDI, which is normally considered a good economic indicator, had touched a record high of 11,793 points on 20 May 2008 before falling dramatically during the global financial crisis. A rise in the index is said to indicate that global economy is picking up.

Baltic index rises, fleet growth weighs on market

The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, rose on Wednesday although slower activity and growing fleet supply were weighing on market sentiment.The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 1.71 percent, or 43 points, to 2,558 points in a 10th session of gains. "After the very rapid rises last week in the capesize sector we are seeing some sideways movement with very little movement in rates,"