Amidst talk that global shipping freight rates are plummeting something strange has happened overnight – they’ve suddenly jumped higher.
Overnight the Baltic Dry Index, a measure of shipping rates for Capesize, Supramax and Panamax carriers provided by the Baltic Shipping exchange, leapt by 6.5% to 725, taking its gain since May 26 to 24.1%. From its all time low of 509 struck on February 18 the index has now rallied 42.4%.
The index for larger Capsize vessels surged 15.6%, while gains for Panamax and Supramax carriers increased 5.8% and 1.6% respectively. At this point there is no obvious catalyst, or news, to explain the sudden move.
While a large move it needs to be put into perspective. Similar one-day gains have been recorded previously only to be reversed while the Baltic’s long-term chart, shown below, also tells the story.
Clearly it’s hard to get too excited about the move, but it’s worthwhile watching in the days ahead.