06-10-2021 Baltic Capesize Index breaks 10,000 points in sizzling dry-bulk market, By Michael Juliano, TradeWinds
The Baltic Capesize Index has broken the 10,000-point barrier for the first time in 13 years, adding another record statistic to a capesize bulker market that is red hot. The sentiment gauge picked up 723 points on Wednesday to reach 10,475 points, according to Baltic Exchange data. The last time the BCI was above 10,000 points was in September 2008, when the dry bulk market was plummeting from record highs as the global financial crisis took hold.
The Baltic Exchange reformulated the way the BCI is calculated in July 2020, after the index slipped into negative territory early in the year due to depressed markets. Meanwhile, the spot market for capesizes is also crossing new thresholds like a runaway train. The capesize 5TC, a spot-rate average weighted across five key routes, leapt 7.4% on Wednesday to $86,870 per day. The assessment has more than doubled since 8 September, when it was $40,518 per day. Spot rates on individual benchmark routes are also forging ahead amid high demand and tight vessel supply, lending great support to the booming capesize sector.
The Brazil-China round voyage improved 6.6% to $72,920 per day on Wednesday. Trips from the European Continent/Mediterranean to China-Japan gained 6.5% to hit $121,000 per day.
The paper market for capesizes kept sailing full steam ahead on Wednesday with big gains seen across most contracts, continuing the winning streak seen over the past few trading days. Forward freight agreements (FFAs) for October jumped 11.2% higher on Tuesday, settling at $75,786 per day. Paper for November leapt up by 14.2% to $61,589 per day.