Phil Franz-Warkentin, Commodity News Service Canada
And Western Producer staff
Winnipeg, Dec. 4 – The Baltic Dry Index has climbed sharply over the past two weeks, rising to its highest levels in nearly four years.
The BDI settled at 1,662 points on Dec. 4, having gained 300 points since the middle of November. The index was last above 1,600 in January 2014.
The BDI is compiled daily by the London-based Baltic Exchange and provides an assessment of the price of moving major raw materials by sea, including grain.
Rising freight rates can put Canadian grain exports at a freight disadvantage in the global market place, due to the country’s distance from major demand centres, such as Asia and Europe, compared to its competitors.
The index also is an indicator of global economic activity as increased ocean traffic usually means that demand for commodities is up.
While at the highest level since early 2014, the index is still well below the levels of 2011-11 when it was peaking above 4,000.
