Issuing agency: China Association of the National Shipbuilding Industry
Column: Statistics
source: https://www.cansi.org.cn/cms/document/17040.html
Since the beginning of this year, due to the repeated effects of the epidemic, congestion at major ports has continued to deepen, and fleet operation efficiency has been difficult to effectively utilize. Various factors have continued to push up freight rates in the international shipping market. On October 7, the Baltic Dry Bulk Freight Index (BDI) reported 5,650 points, an increase of 311% from the beginning of the year. On the same day, the Capesize Bulk Carrier Freight Index reported 10,485 points, an increase of 422% from the beginning of the year.
Since mid-October, the BDI has fallen rapidly. On November 10, the BDI reported 2,861 points, down 49% from the year's high. On the same day, the Capesize Bulk Carrier Freight Index reported 3,870 points, down 63% from the year's high.
Experts believe that the recent rapid decline in BDI is mainly due to the sharp correction in Capesize bulk carrier freight rates. On the one hand, port congestion has improved recently, and more shipping capacity has returned to the spot market. On the other hand, China's iron ore inventories continue to rise, and traders judge that there is still room for decline in current raw material prices, which has slowed shipping demand. Since the current seaborne trade volume is lower than potential demand, it is expected that there will be limited room for continued decline in bulk carrier freight rates at the end of the year.