Shipping stocks rally as Baltic Dry Index hits 4-month high
Time：2014-08-22
Browse：55
The Baltic Dry Index touched 1,061, its highest level since April 9 2014, has rallied 47% from its recent low of 723 touched on July 22, the Bloomberg data shows. The index has risen nearly over 40% since the start of August.
Shipping Corporation of India (SCI), Mercator, G E Shipping and Chowgule Steamships are up 1-9% on the Bombay Stock Exchange (BSE). While ABG Shipyard (up 10% at Rs 255) and Bharati Shipyard (up 5% to Rs 35) also rallied by over 5% each.
The Baltic Exchange’s Shipping Indexes are widely followed by analysts, money managers, shipping companies and investors because they provide benchmark rates for transporting dry bulk commodities such as iron ore, coal, and grain across water.
Higher shipping rates are generally positive for shipping companies’ revenues, which will positively affect earnings, cash flows, and share prices.