19-08-2014, 08:08 PM
(19-08-2014, 06:40 PM)corydorus Wrote: Anyone knows how to read this BDI index. Dropped fromm 2008 high to current not even 10%. Does that mean rough gauge reduction of more than 90% in shipping volume since ?
BDI is meant for Dry Bulk shipping and not for Container shipping.
World Container Index is one possible guide for Containers shipping.
In short, if there are shipping rates for today, then there's also the expectation of tomorrow's rates.
Companies use forward contracts to lock in the availability of resources in the future at a set price. When shipping companies negotiate the rates of shipping materials/goods, they consider future expected supply and demand.
Cheers
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