Shipping stocks sail higher as Baltic Dry Index hits 8-month high

Shares of shipping companies were in demand on Friday as freight rates surged sharply, lifting investor sentiment across the sector.

The Baltic Dry Index (BDI), a global benchmark that tracks the cost of transporting dry bulk commodities like coal, iron ore, and grains, jumped 9.6% to 1,904, marking its highest level since October 7. The rally in BDI reflects strong activity in global trade routes.

On the back of this, Shipping Corporation of India (SCI) (up 5.16%), Velox Shipping and Logistics (up 5%) and Great Eastern Shipping Company (up 2.63%) surged.

A rising BDI typically boosts earnings potential for shipping companies as it directly translates into higher freight revenues per voyage.

 

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