Project Description
The Baltic Dry Index lost nearly half its value during January down to just above 500 points. Overall demand was 6% higher compared to last January, so what is the difference? Congestion and fleet efficiency. Being out of Covid restrictions has made a huge difference to the level of freight rates. In fact our data suggests utilisation for the dry bulk fleet is 1.8% lower despite a 6% growth in cargo.
Coal volumes have increased as a result of well talked about energy crisis, up 23% compared to last year. All round there was positive bookings in January yet sentiment about a recession could be another factor for pulling down freight rates. February is always a poor month so we wait with interest to compare it with last year. Utilisation figures have fallen even lower for February but freight rates have bounced in March as expected.
Brazil Iron ore exports have dropped off significantly in January, along with Chinese imports. Iron ore is 3% down overall. On the positive side, steel and cement picked up in January showing the construction sector of the economy is making progress.