A Tale of Boom and Bust: What Drives Dry Bulk Freight Rates?

Abstract: As events in the past year have amply demonstrated, volatility in shipping markets is very much back after a period of relative tranquility. Thus, the Baltic Exchange Dry Index, a measure of shipping costs, nearly quadrupled from January to June 2020 as the shocks of COVID-19 first ravaged, then propelled international trade in bulk commodities. Even one-time events, such as the Suez Canal blockage in late March 2021, suddenly roiled global shipping markets.

Keywords: Trade; Economic Conditions;

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Bibliographic Information

Provider: Federal Reserve Bank of Dallas

Source: Dallas Fed Economics

Publication Date: 2021-05-04