CNS Canada — Ocean freight rates are trending higher, with the Baltic Dry Index (BDI) hitting its highest level of the past two years on Tuesday.
The BDI, compiled daily by the London-based Baltic Exchange, provides an assessment of the price of moving major raw materials by sea, including grain.
It was quoted Tuesday at 1,333 points, its highest level in two years. That’s up by about 500 points over the past month, and well above the record low of 290 from Feb. 10, 2016.
Rising freight rates can put Canadian grain exports at a freight disadvantage in the global marketplace, due to the country’s distance from major demand centres, such as Asia and Europe, compared to its competitors.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.