Baltic Index hits near two-year high on higher larger vessel rates

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which monitors rates for vessels moving dry bulk commodities, rose to a nearly two-year high on Friday and was on course for a weekly gain, aided by an increase in larger vessel rates.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 5 points to 2,275 points, its seventh consecutive gain and the highest level since March 2024. The contract was up nearly 7% this week.

The capesize index (.BACI) gained 6 points to 3,653 points, marking its highest level since late July. The contract rose over 12% this week.

Average daily earnings for capesize vessels (.BATCA), which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $48 to $30,292.

Iron ore futures prices declined for a second straight session, weighed down by signs of softer demand and shrinking steel margins in top consumer China.

The panamax index (.BPNI) rose by 16 points, or 0.8% to 1,928 points.

Average daily earnings for panamax vessels (.BPWT), which usually carry 60,000-70,000 tons of coal or grain, increased by $150 to $17,354.

Among smaller vessels, the supramax index (.BSIS) was down 3 points to 1,432 points, snapping a eleven session win streak. However, the contract was up 1.9% for the week.
Source: Reuters