The Baltic Dry Index (BDI) settled at around ~1,065 points (USD) on September 1st, 2023 versus ~1,136 points (USD) on August 8th, 2023, i.e. the date when we released our previous blog.
In the earlier period, and specifically from May 10, 2023 until June 2, 2023 the BDI recorded a significant drop i.e. from 1,633 to 919 points, while in the previous period i.e. from March 7, 2023 to May 10, 2023 the Index was trading along the channel of 1,300 – 1,650 points.
From June 2020 up to August 2023, the Baltic Dry Index has been almost convincingly trading above the psychological level of 1,000 with the exception of two periods, i.e. firstly the period January – February 2023, when the Index retreated significantly dropping as low as at 500 points, and secondly the period May – June 2023 mentioned above. In the beginning of July 2023, the Index also slipped below 1,000 for few trading sessions.
Our previous blog, on August 8th, 2023, with the Index at ~1,136, was reading as follows:
“… The recent period is arguably not the ideal backdrop for the dry bulk market as time charter rates have been sliding downwards for quite a few months now. On the other hand, the broader market environment as expressed by the BDI has proved resilient and sentiment among participants remains relatively uplifted as the Index has digested the psychological level of 1,000 and makes modest attempts to look at even higher territories. …”
We haven’t altered our view of seeing the level of 1,000 as strong support line both in the short-term horizon and for the longer-run. The global macroeconomic environment if it stays broadly resilient, then it can act as sufficient condition for BDI sustaining its current levels. On the other hand, given the successive interest rate hikes and the cooling off seen in some of the economies internationally, there could be some further impact on the dry bulk market coming from fading demand in the short-term. Overall we would not anticipate that BDI trades below 1,000 for a long period of time.
BALTIC DRY INDEX as of September 1st, 2023 (latest price and intraday change):
BALTIC DRY INDEX as of July 10th, 2023 (latest price and intraday change):
BALTIC DRY INDEX as of March 1st, 2023 (latest price and intraday change):
BALTIC DRY INDEX as of February 15th, 2023 (latest price and intraday change):
BALTIC DRY INDEX as of November 23rd, 2022 (latest price and intraday change):
BALTIC DRY INDEX as of October 12th, 2022 (latest price and intraday change):
BALTIC DRY INDEX as of August 31st, 2022 (latest price and intraday change):
Source: Bloomberg
FIGURE 1: Baltic Dry Index (BDI) (in USD) | May – September 1st, 2023
[Bloomberg ticker: BDIY:IND, BDI Baltic Exchange Dry Index]
Source: Bloomberg, Trading Economics, https://www.marinevesseltraffic.com/ , www.investing.com
FIGURE 2: Baltic Dry Index (BDI) (in USD) | 2014 – September 1st, 2023
[Bloomberg ticker: BDIY:IND, BDI Baltic Exchange Dry Index]
Source: Bloomberg, Trading Economics, https://www.marinevesseltraffic.com/ , www.investing.com
FIGURE 3: Baltic Dry Index (BDI) (in USD) | Last 38 Years up to September 1st, 2023
[Bloomberg ticker: BDIY:IND, BDI Baltic Exchange Dry Index]
Source: Bloomberg, Trading Economics, https://www.marinevesseltraffic.com/ , www.investing.com
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