Baltic Dry Index drops below 1,000 pointsBaltic Dry Index drops below 1,000 points

The benchmark Baltic Dry Index (BDI) dropped below the psychological threshold of 1,000 points on Wednesday. The index dropped 4.83% to 966 points on 8 January.

Having performed unexpectedly well for much of 2024 the dry bulk market enduring a torrid fourth quarter. At the end of September 2024 the BDI stood at 2,084 points but dropped sharply in October as rates for Capesizes halved in the space of few weeks.

There is little sign of much respite for the dry bulk market at the start of 2025. In a markets outlook episode on the Seatrade Maritime Podcast Maritime Strategies International (MSI) Director Will Fray said there were 36 million dwt of new ships to be delivered in 2025.

MSI’s modelling showed that 240 million tonnes of incremental cargo demand would be needed in 2025 to absorb all the new ships delivered. “I think that’s a really tall order for the dry bulk sector,” Fray said.

Listen to the dry bulk shipping markets outlook podcast

In a report issued on 7 January Breakwave Advisors said that only weather related disruptions would likely drive the market in the traditionally slack first quarter of the year.

“Looking ahead, there are limited near-term catalysts likely to push rates higher, aside from potential weather-related disruptions. Given the typically low trading volumes in the first quarter, any sharp rate increases would largely depend on unpredictable weather-induced delays or disruptions,” the report said.