Baltic Index hits 15-week high as rates of all vessel sizes rise

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which monitors rates for vessels moving dry bulk commodities, hit a 15-week peak on Wednesday as rates rose across all vessel segments.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 123 points to 1,559 points, its highest level since November 26.

The capesize index climbed 285 points to 2,759 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, rose $2,370 to $22,884.

Iron ore futures surrendered early gains to trade lower, as sentiment was spooked by resumed market talks of China’s plan of trimming crude steel output to rein in oversupply plaguing the industry.

The panamax index hit a two-week high, adding 94 points to 1,158 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, rose $843 to $10,421, its highest level in two weeks.

“Forward Freight Agreements (FFAs) currently indicate that freight rates could further strengthen, particularly for the capesize and panamax segments. While periods of weaker rates could occur, freight rates typically recover as the first quarter comes to an end, due to seasonality,” said Filipe Gouveia, shipping analysis manager at BIMCO.

Among smaller vessels, the supramax index rose 8 points to 872 points.

Source: Reuters