By Anastasia Vamvaka
An impressive increase has been recorded in recent weeks in the freight market of cargo ships despite the increase in inflation. The BCI index, which provides information on future developments in production, orders and inventories of finished products in the industry, increased by 85% in the last month and almost 460% from January 26, 2022, when it had fallen to 702 points. , the lowest point of the last 23 months.
Increased demand for coal, especially from India, is the main reason for this return but also the increased needs of Europe due to the reduction by 40% and more of imports of products from Russia. The Baltic Dry Index (BDI), the main bulk freight index, closed at 3,117 points, a level it had “seen” since December 13, when it had recorded 3,216 points. The cargo is now coming to Europe from more distant regions than Russia and Ukraine which were the main European suppliers. According to the Center for Research on Energy and Clean Air (CREA), in the first two months after the Russian invasion of Ukraine, EU coal imports from Russia have been reduced by 40%.
Many countries are looking for coal from other producers such as Australia, Indonesia and South Africa, adding tons of miles to the shipping industry and increasing demand for maritime trade. India, in an effort to prevent any energy splits and reduce energy costs, is trying to buy as much coal as it can, mainly from Australia, Indonesia and China.
“Rising inflation may not be bad for the shipping industry in the end. Fares are moving higher, pushing up used car prices, while newer prices are moving upwards due to higher construction costs and scrap prices,” said Xclusiv Shipbrokers. scrap prices are almost 40% higher on an annual basis.
I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.