Baltic Index hits six-week peak on stronger capesize, supramax rates

LONDON : The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, extended its climb to a six-week high on Tuesday, as rates across capesize and supramax vessel segments strengthened.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 37 points to 1,039 points, its highest since January 15.

The capesize index scaled over a five-week peak, adding 120 points to 1,159 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, gained $992 to $9,612.

Iron ore futures prices faltered as they were weighed down by a recovery in iron ore shipments, with increasing levies and legislation on Chinese steel exports putting further pressure on sentiment.

Among smaller vessels, the supramax index logged gains for a 16th straight session, as it rose 9 points to 904 points.

The panamax index shed 21 points to reach 1,156 points, snapping a seven-session winning streak.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $195 to $10,400.

The United States imposed a fresh round of sanctions targeting Iran’s oil industry on Monday, hitting more than 30 brokers, tanker operators and shipping companies for their role in selling and transporting Iranian petroleum, the Treasury Department said.

Source: Reuters