Demand for iron ore keeps pushing up Baltic Dry Index

The Baltic Dry Index, a measure of shipping costs for commodities, rose by 159 points or 8.8 per cent to 1,974 points on demand to ship iron ore to China, according to Exim News Service.

This is the longest advance since May 2007.

It is the 16th straight gain with all vessel classes advancing. The gauge has more than doubled this year after collapsing by a record 92 per cent last year, as demand for raw materials fell and the world economy slumped.

More iron ore is shipped by sea than any other dry bulk commodity, according to Drewry Shipping Consultants.

Coal exports from Australia’s Newcastle port, the world’s biggest export harbour for the fuel, meanwhile, rose by 39 per cent recently.

Daily rates for Capesizes rose by 10 per cent to $ 37,610, the highest since October. They fell to a record low of $ 2,316 on December 2.

Smaller Panamaxes increased by 11 per cent to $ 12,182 a day.

Source: Transportweekly