Baltic Index scales 14-week peak on larger vessel rate gains

LONDON : The Baltic Exchange’s dry bulk sea freight index, which monitors rates for vessels moving dry bulk commodities, rose to a more than 14-week high on Monday, aided by rising rates across the capesize and panamax vessel segments.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose for a third straight session, adding 24 points to 1,424 points, its highest level since November.

The capesize index rose by 56 points to 2,478 points. It climbed over 33% last week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $470 to $20,554.

Prices of iron ore futures slipped as caution over U.S. tariffs and China’s pledge to cut crude steel output this year clouded demand prospects.

The panamax index was up 19 points at 1,014 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, added $171 to $9,122.

Among smaller vessels, the supramax index remained unchanged at 864 points.

Source: Reuters