Baltic Index extends gains on strong Capesize Rates

LONDON : The Baltic Exchange’s main sea freight index rose for the third straight session on Thursday, driven by higher rates for capesize vessels.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, rose 138 points, or 6.5%, to 2,258 points, its highest level since March 2024.

The capesize index climbed to a one-year peak, gaining 451 points, or 13.5%, to 3,790.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased $3,741 to $31,429.

“We forecast that bulker deliveries will gradually increase this year and in 2026, reaching 41.2 million Deadweight Tonnes (DWT) and a six-year high,” Filipe Gouveia, shipping analysis manager at BIMCO, said in a note dated Wednesday.

“Bulker newbuilding contracting was strong in 2023 and 2024, and several of the ships ordered during this period are expected to be delivered during this and next year.”

Dalian iron ore futures prices closed lower, pressured by increasing supply from top miners Vale and Fortescue, and higher steel inventories at Chinese mills.

The panamax index slipped 23 points, or 1.2%, to 1,882.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $202 to $16,940.

Among smaller vessels, the supramax index shed 15 points, or 1.1%, to 1,298.

Source: Reuters