Baltic Index Rises To Nearly 2-Year High On Strong Capesize Demand

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for vessels transporting dry bulk commodities, climbed to its highest level in nearly two years on Friday and was on course for a weekly gain, driven by strong demand for capesize vessels.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 80 points, or 3.2%, to 2,560 points. The contract hit its highest level since December 2023 and was up 12.5% this week.

The capesize index climbed 245 points, or about 5.8%, to 4,481 points, marking its highest level since March 2024. The contract rose over 22% this week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $2,025 to $37,158.

Iron ore futures prices dipped, but logged their third straight weekly gain on recent infrastructure demand.

The panamax index fell by 10 points, or 0.5%, to 1,952 points, but the contract was up 1.2% for the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $89 to $17,566.

Among smaller vessels, the supramax index was up by 4 points, or 0.3%, to 1,441 points. The contract was up 0.6% during the week.
Source: Reuters