Modest Slide for the Baltic Dry Index with Volatility Looming Ahead

The Baltic Dry Index (BDI) was trading at around ~2,420 points on March 30th, 2022, or 270 points lower than a couple of weeks ago, versus ~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 previous 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.

Global markets are now being overwhelmed with concerns about the nature of inflation pressures that the economies are currently experiencing. The ongoing high inflation rates are quite worrisome and if they are to stay for long that might have negative repercussions on the global economic outlook, affecting trade and consequently the shipping market.

For the time being, the mixture of war in Ukraine, geopolitical tensions, high energy prices along with slowly diminishing but still existent effects of the Covid-19 pandemic is as good as it gets for the dry bulk market and the favorable trend on the charter rates.

The dry bulk market may be keeping its current trading levels after the big dip seen in February, however given the continuous uncertainty on a number of fronts, and also due to the low visibility at this point in time, volatility could be looming and it goes without saying that market participants should remain cautious rather than careless.

BALTIC DRY INDEX as of March 30th, 2022 (latest price and intraday change):    

BALTIC DRY INDEX as of March 16th, 2022 (latest price and intraday change):    

BALTIC DRY INDEX as of February 16th, 2022 (latest price and intraday change):    

BALTIC DRY INDEX as of February 2nd, 2022 (latest price and intraday change):     

BALTIC DRY INDEX as of January 19th, 2022 (latest price and intraday change):   

            Source: Bloomberg

FIGURE 1: Baltic Dry Index (BDI) | December 2021 – March 30, 2022    

[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) | 2013 – March 30, 2022    

[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) | Last 36 Years up to end of March 2022    

[Bloomberg ticker: BDIY:IND, BDI Baltic Exchange Dry Index]

            Source: Bloomberg, Trading Economics, https://www.marinevesseltraffic.com/ , www.investing.com