"The Baltic Dry Index (BDIY) – which tracks the movement of the average prices of shipping goods by sea – has seen a revival in the last month. The index had slumped 67.8% since the beginning of the year, recording a low of 723 points on 22 July. It has since made a comeback, however, having sharply risen to 1,040 points – up 38.3% since the start of August."
"Iron ore producers blamed unfavorable weather for the lower production in the initial months of the year, which caused a drop in the demand for shipping. The decreased demand compelled shipping companies to operate at lower capacity (running their ships half-empty at times), which resulted in lower revenue per voyage."
"The revival of the Index is a testament to the strengthening global economy, with increasing prices the result of greater demand for shipping in the last month. Analysts believe that the shipping price increase is largely driven by iron ore shipments."
"The three companies that dominate the global production of iron ore – Rio Tinto plc (RIO), BHP Billiton Limited (BHP) and Vale SA (VALE) – announced an increase in iron ore production in their second-quarter operational reviews."