The Baltic Dry Index has surged 45pc in just three weeks, easing fears that the world economy has slammed on the brakes.
The index dropped off sharply from its four-year high during the first quarter of the year amid fears that buoyant global growth had hit the buffers. But the index has started the second quarter on a stronger footing.
The Baltic Dry Index is a trade indicator that measures shipping costs for commodities, tracking global trade and indicating the future direction of economic growth. It is seen as a global growth bellwether.
First-quarter growth figures in the UK, US and France on Friday showed that the global economy struggled to maintain its momentum following a stellar 2017.
The index tracked the global dip in growth, nearly halving from its December peak of 1743 points to last month’s eight-month low of 948.
After surging 26pc last week, its sharpest increase since 2014, it has recovered a further 23pc this week.
Shipping analysts noted that global trade usually dips slightly in the first three months of the year to account for Chinese New Year, but this drop was deeper and longer than expected.
The index plunged in the run-up to the financial crisis and analysts fretted over a step drop in the index in 2015 after it slumped to record lows.