The Baltic Dry Index (BDI) was trading at around ~681 points (USD) on February 1st, 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 (January 18th, 2022), with the BDI ranging at around 921 points, ended as follows: “… The market’s correction over the past couple of weeks proved to be substantially steeper than what we had expected as the Baltic Dry Index moved further downward and traded below the 1,000 threshold. Uncertainty over the global macroeconomic outlook and the impact of a potential recession on sector companies’ earnings appear to heavily weigh in terms of market sentiment. There is also some further speculation added to the above factors which in turn exaggerates the bearish scenario and makes participants in the market more despondent than they should have otherwise been …“
Global economy continues to show some resilience against the backdrop of high interest rates and inflation pressures which curb demand for goods and services among markets and geographies. However sentiment remains fragile among participants and investors alike, 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 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.
BALTIC DRY INDEX as of February 1st, 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 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) | 2013 – February 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 36 Years up to February 1st, 2023
[Bloomberg ticker: BDIY:IND, BDI Baltic Exchange Dry Index]
Source: Bloomberg, Trading Economics, https://www.marinevesseltraffic.com/ , www.investing.com
