July 05, 2008

BDI rises to 4 month high on Atlantic Vessel Shortage - Report

Bloomberg reported that Baltic Dry Index, a measure of shipping costs for commodities, rose to a four month high after a reported jump in exports from Argentina increased speculation about a shortage of vessels in the Atlantic.

According to the Baltic Exchange in London, the index tracking transport costs on international trade routes advanced 274 points to 9,855 points. That's the highest since December 14. Prices have advanced for four consecutive weeks, the longest winning streak since October.

Mr Steve Rodley co manager of Global Maritime Investments Ltd's said that “We have got people jumping over each other to pick up the ships that are available for May.”

He added that hire rates within the Baltic's benchmark advanced for every class of ship, including Handymaxes. Rising prices for hauling coal and bulk commodities benefit shipping companies such as Navios Maritime Holdings Inc, Genco Shipping & Trading Ltd and DryShips Inc.