Despite a relatively unstable year for dry cargo trade, January 2021 brings a 6% fall in
demand. Although, dry cargo demand is 7% higher than January the previous year. BDI
performance reached its peak of 1,856 during January which was a 36% increase from
the previous month high. Unusually, this is moving in the opposite direction to cargo
Coal is experiencing a fair amount of volatility due to the pressures of Covid-19 and
China’s change in Coal import suppliers. A weaker start to January for steam coal,
largely due to growth reaching a healthy demand of 84 million tonnes in December.
Iron Ore trade growth remains fairly steady, with a 2% drop in volume in January
compared to the previous month. Australia remains the largest exporter of Iron Ore,
producing around 873 million tonnes in 2020. This export figure has increased by 32
million tonnes since 2019. With China’s increased import levels of Iron Ore reaching
heights of 115 million tonnes per month in June 2020. Brazil and Australia’s competition
over supplying this commodity have not been sufficient. India has in turn moved in as
another key supply source for China’s Iron Ore: export rates have shot up by 32 million
tonnes between 2019 and 2020, a phenomenal 68% increase.