Freight Market Up Again

The Baltic Dry Index jumped 14% Thursday, adding to a 15% leap the day before, to post its 13th day of successive increases.

Closing at 1,498 the index has now gained 125% since early December when it fell to 663. The index is now at its highest level since October last year. There could still be plenty of room on the upside yet, as we are a long way from the index's all-time high of 11,793 set in May 2008.

Commodities finally seem to be starting to move again, with letters of credit being more readily accepted, prompting a flood of interest to fix iron ore vessels to China. BHP Billiton say that the Chinese iron ore destocking process is almost over pushing spot prices higher.

Keen not to miss the boat (!) South Korea have bought around a million tonnes of wheat and corn in the last two weeks in a rush to build stocks before freight rates rise further.