The Baltic Dry Index (BDI) was trading at around ~563 points (USD) on February 15th, 2023 versus 1,720 points on December 21st, 2022, ~1,904 points (USD) on October 12th, 2022, ~2,145 points on July 20th and versus ~3,253 points on May 25th, 2022, ~1,644 points on January 19th, 2022, ~2,300 points on December 22nd, 2021 and vis-à-vis ~3,350 points during November 2021. That level compared to the 4,050-4,060 pts of October 27th, 2021 and to a trading level of around 5,380 pts on October 13, 2021. The above also compared to the trading level of 4,962 pts at the end of September 2021.
Concerning the period before that, the Baltic Dry Index traded at around 3,650 points in the middle of August 2021 versus 3,281 points on August 4th, 3,058 points on July 21st, 3,179 pts on July 5th, 2021, and 2,420 pts during May 2021.
Our previous blog a couple of weeks ago (February 1st, 2023), with the BDI ranging at around 681 points, ended as follows: “… Global economy continues to show some resilience against the backdrop of high interest rates and inflation pressures which curb demand for goods and services across markets and geographies. However sentiment remains fragile among participants and investors, exacerbating the potential repercussions of an upcoming recession on sectors such as dry bulk shipping. We have witnessed a steep correction of BDI over the past several weeks from close to 1,800 to below 700, or around a 60% decline, which up to a certain extent might not be fully justified. The upward exaggerations of the previous couple of years have now led to equivalent downward excessive pressures where negative sentiment makes all the fuss and fundamentals stay aside. We continue to stay more optimistic for the year 2023 compared to what the current market levels tend to imply. …”
Covid-led supply disruption in the global market over the period 2020 – 2022 was apparently the most precious ally of dry bulk shipping sector as the BDI climbed to historic highs, i.e. levels not seen for more than a decade. Now that Covid has disappeared from the background scene, the market’s golden days seem to have gone for long whereas sentiment remains at the very bottom and without signs of exhaustion. Technically the market is approaching its long-term historic lows and therefore we should expect at least a technical reversal in the coming weeks.
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 26th, 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):
BALTIC DRY INDEX as of July 6th, 2022 (latest price and intraday change):
BALTIC DRY INDEX as of June 8th, 2022 (latest price and intraday change):
Source: Bloomberg
FIGURE 1: Baltic Dry Index (BDI) (in USD) | October 2022 – February 15th, 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) | 2013 – February 15th, 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 36 Years up to February 15th, 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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