Baltic Dry Index Continues To Make New Lows, Hits 310

JPMorgan on Wednesday issued a report on the Baltic Dry Index amid concerns of a global economic slowdown. The Baltic Dry index recently traded at $310.00.

Analyst Noah R. Parquette wrote, "The Baltic Dry Index fell to 303 with only Panamax rates not falling. Tradewinds reported that Hyundai Merchant Marine could be looking to renegotiate dry bulk charters as it goes through a restructuring."

The Baltic Dry Index tracks the price of shipping raw materials across trade routes, making it a good indicator of global economic activity and demand for goods. In recent years, China's rapid GDP growth has spurred demand for these shipping companies that are tracked by the index, however, with growth slowing there are concerns about the health of the shipping industry.

Analysts at JPMorgan broke down the daily shipping rates for various trading routes with many of them valued substantially lower than last year, with two highlighted below.

1. Suezmax-UK/Cont to E.Canada

This route tracks tankers that are able to pass through the Suez Canal from the United Kingdom to Eastern Canada. Last year, the shipping rate was $72,288 per vessel day compared to $51,755 currently.

2. Aframax-UK/Cont to USAC

This route tracks tankers that are small enough to fit through the Panama Canal from the United Kingdom to the continental United States. Last year, the shipping rate was $29,839 per vessel day compared to $24,286 per vessel day currently.