like anything its a question of context.... if we discount all the hearsay reporting that suggests this is a back log from the canal blockage and the uptick in shipping from folks ordering playstations while in lockdown.... these things are cyclical. in the context of the last decade, yes we are at the higher end of shipping rates, but these are not historically unprecedented.
The Baltic Dry Index is reported daily by the Baltic Exchange in London. The index provides a benchmark for the price of moving the major raw materials by sea. The index is a composite of three sub-indices that measure different sizes of dry bulk carriers: Capesize, which typically transport iron ore or coal cargoes of about 150,000 tonnes; Panamax, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes; and Supramax, with a carrying capacity between 48,000 and 60,000 tonnes. The Baltic Dry Index takes into account 23 different shipping routes carrying coal, iron ore, grains and many other commodities.
So while companies will likely flag this as a point of negotiation when looking at forward pricing..... this is not something that is going to halt global trade...or the mining industry for that matter.
