According to media reports, the Baltic Dry Cargo Index (BDI) rose sharply last week. The latest index reached 2385 points on the evening of the 16th. Due to hot steel demand, China’s electricity consumption in the first quarter increased by 20%, and coal began to enter. Brazil’s grains, which had previously been shipped due to slow weather, have also begun to rise. The bulk shipping industry estimates that BDI will have a chance to break through the 2518 points in June 2010 in the next week, setting a new 11-year high.
Relevant airlines pointed out that the first quarter of this year was already in the off-season, and the second quarter was due to the improved weather in Brazil and Australia. In April, the monthly growth rate of iron ore exports from Brazil and Australia was 6.5%. The World Steel Association estimates that the global The growth rate of steel demand increased from 4.1% to 5.8%. And Brazil started exporting soybeans at high prices in early April. According to customs data, 5.8 million tons of soybeans were exported in the first two weeks of April, an average of more than 964,000 tons per working day, which is 30% higher than the April 2020 average.
According to data from broker Howe Robinson, there were 159 ships parked at the main grain loading yard waiting to load soybeans in mid-March, which was four times higher than the five-year average. The worsening port congestion reduced the vessel turnover rate. And because China still stops importing coal from Australia, apart from Indonesia, it needs to import coal from South Africa and Central and South America. The round-trip voyage is 10 to 20 days longer than that of Australia, which further stimulates higher freight rates. China Securities Investment also pointed out that freight rates may continue to remain high in the second and third quarters.
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Explosion! Sea freight will soar again? Back to the high point in mid-February, even higher!
As shipping companies reduced their commitment to contract volume and switched to higher FAK rates, the spot freight rates for all container transactions began to rise again from their already high levels.
Freightos Baltic Index (FBX) China-Nordic components rose slightly to US$7,354 per 40 feet this week. European routes and overall market transportation demand increased. Affected by the Suez Canal blockage, the market is facing a short-term shortage of capacity. The price has risen. Related market reports show that the freight rate of this route will soar again next week, returning to the high of US$8,430 in mid-February, or even higher.
