Baltic Dry Index Advances 24 Straight Days in a Row, Rises Today By 11.5%, A 425 Point Gain
From last Wednesday:
BLOOMBERG -- The Baltic Dry Index, a measure of shipping costs for commodities, surpassed 3,000 points for the first time since October, buoyed by Chinese demand for iron ore. The index tracking transport costs on international trade routes rose 222 points, or 7.6%, to 3,164 points, according to the Baltic Exchange today. The measure posted an 18th straight gain, its longest advance in two years.
Such is demand that shippers “are almost pleading” to hire vessels, Stuart Rae, co-managing director of M2M Management Ltd., a hedge fund group that trades freight derivatives and operates carriers, said by phone today. The rally “is being driven by iron ore, by congestion in China, and by a lack” of ships available for hire in the Atlantic.
MP: Less than a week later, the Baltic Dry Index rose above 4,000 today for the first time since September 2008 (see chart above), and it has now posted its 24th consecutive daily gain. Today's 425 point gain represents a 11.5% one-day increase.