Baltic Dry Index Gains Almost 30% in 3 Weeks to Hit Highest Levels in Over Two Years

The Baltic Dry Index gained another 5 points today to reach 1338.

The Baltic Dry Index (BDI) Tuesday gained 51 points to reach 1333 - the highest the index has been since November 2014.

BDI gained a further 5 points today to reach 1338, buoyed by higher spot TC rates in the Panamax segment, which grew to earnings of $10,805 per day (+$318), while earnings in both the Capesize and Supramax segments dropped to $20,560 per day (-$97) and $9,251 per day (-$91), respectively.

The gains form part of an impressive run for the beleaguered sector's key barometer, with the BDI having risen almost 30 percent over the last three weeks.

The BDI only broke the 1000 point mark for the first time this year on March 7.

Alongside the development, the London-based Baltic Exchange Tuesday announced that it will be launching dual reporting of a new Panamax Index on a trial basis from April 24, and will cease dual reporting of the 52,000 DWT assessments from April 3, 2017, following a successful trial of the Supramax 58,000.

"The amendments are part of an ongoing quality review of the Baltic Exchange Indices and assessments to ensure that the benchmarks continue to accurately reflect the changing dry bulk shipping fleet profile and cargo flows," explains the organisation.

The Baltic Exchange says contracts based on the 52,000 DWT weighted average time charter that derives the settlement value from the common five routes between the 52,000 DWT and the 58,000 DWT vessel.

The Baltic Exchange also notes that it is in the final consultation process of a new Handysize Vessel dual reporting period for the Handysize Index

"These are important changes that are at various points in our ongoing development cycle. All the amendments have made following extensive consultations with the market," said Mark Jackson, CEO of the Baltic Exchange.

"It is important to note that all these amendments are designed to reflect vessel fixtures and cargo flows as required by the International Organization of Securities Commissions (IOSCO).  IOSCO requires financial and commodity Index providers to demonstrate through data that their indices are a true reflection of the underlying market."

Earlier this month, Ship & Bunker reported that BDI had broke the 1000 mark, gaining 54 points to reach 1033 - the highest level that the index had been since mid-December.