Baltic Dry Index Rebound Feb 2011

The baltic dry index which measure the cost of shipping dry bulk globally has finally take a break from its previous downtrend and had seen a small rebound recently. There are many factors causing the decline in BDI and the main one is the oversupply of Ships while the relative demand for dry bulk shipping hasn't keep up with the supply. Another reason for the recent decline is the flooding disaster in Australia which is the main global exporter of coal and another reason is the major consumer of iron ore China has close off its import because of Chinese New Year recently. But as the flooding disaster in Australia is improving and with the finishing of Chinese New Year holiday, we should continue to see the BDI rebound for a while. However, I remain cautious over the long term view for BDI over this year because of the oversupply of new ships.


Article by Trading Room
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