Baltic Dry Index posts best annual gain in its 25-year history

Time:2009-12-30 Browse:42 Author:RISINGSUN

THE famous Baltic Dry Index, a measure of cost in shipping commodities, and regarded as a barometer of global economic health, posted its best-ever annual advance since it started in 1985.
The 2009 advance of the London index that tracks transport costs in world shipping, was credited to Chinese iron ore demand, reported Bloomberg. The index advanced 288 per cent this year, exceeding it previous record of 174 per cent in 2003.
Shipping costs rebounded this year, after plunging a record 92 per cent last year, as the global economy recovered from the downturn. China, the world`s biggest consumer of iron ore and coal, spent US$586 billion to stimulate its economy. The two commodities are the biggest cargo carried by ships included in the Baltic Dry Index.
"Next year is going to be a better year than a lot of people expect, but a lot depends on Chinese demand continuing," said Michael Gaylard, strategic director at Freight Investor Services Ltd, a London derivatives brokerage.
Seaborne trade in coal, ore, grains and other dry bulk commodities will drop 1.2 per cent to 2.997 billion tonnes this year, according to London`s Drewry Shipping Consultants.