“Quiet” Period with No Major Swings for the Market These Two Past Weeks

The Baltic Dry Index (BDI) was trading at around ~2,285 points on January 5th, 2022 versus ~2,300 points on December 22nd, 2021 and vis-à-vis ~3,350 points a four weeks before. That level compared to the 4,050-4,060 points of October 27th, 2021 and to a previous trading level of around 5,380 points on October 13, 2021. The above levels also compared to the trading neighborhood of 4,962 points 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.

As no major price movements were seen in the levels of the Baltic Dry Index over the last 2-3 weeks, we just want to reiterate a few points from our previous blogs regarding the dry bulk shipping market:

1) The international economies once again are under pressure threatened by new containment measures due to the new Covid variant;

2) The current broader trading level of BDI might not post a too big downside risk with the Index expected to sustain over the next months and quarters a trading level that will be higher, or notably higher, than the average ones of years 2020 and 2019;

3) We don’t believe that volatility will disappear; on the contrary we expect another turbulent first half this year given the many fronts of concern: pandemic, inflation and interest rates among others.

4) Global supply-demand forces will be inevitably affected in all economies and investors will be called to reassess their asset allocation and investment priorities.

BALTIC DRY INDEX as of January 5th 2022 (latest price and intraday change):

BALTIC DRY INDEX as of December 22nd, 2021 (latest price and intraday change):

BALTIC DRY INDEX as of December 8th, 2021 (latest price and intraday change):

BALTIC DRY INDEX as of November 24th, 2021 (latest price and intraday change):

Source: Bloomberg

FIGURE 1: Baltic Dry Index (BDI) | September 2021 – January 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) | 2012 – January 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 January 2022    

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

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