The Baltic Dry Index, which is the Baltic Exchange’s main index for tracking the rates of ships carrying dry bulk commodities, has climbed above the 300 mark after falling to a record low of 290 points recently, according to gCaptain.
The Baltic Dry Index now stands at 301 points.
The index rate-drop to 290 points was the lowest ever recorded since records began in 1985.
The shipping industry has been struggling to remain profitable following the recent crash in the Chinese stock market.
Demand has since shot down and has affected China’s exporting power, which has had a knock on effect on other industries due to the mismatch between supply and demand.
Olaf Merk, Administrator for Ports and Shipping at the ITF of the OECD recently gave an exclusive interview with Port Technology, in which he argued that if the industry is to plough through tough times, it will need to take action to cut idle ships.
This could be the ultimate solution for restoring supply and demand, as well as ensuring that ports and terminals are not under consistent strain to handle an excess of port calls.