Baltic Index logs Best Year since 2016

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for vessels transporting dry bulk commodities, inched lower on Wednesday, but logged its best year since 2016.

The Baltic report will not be published until January 2, 2026 due to post-Christmas and New Year holidays.

The main index which factors in rates for capesize, panamax and supramax shipping vessels, lost 12 points, or 0.6%, to 1,877 points. However, it rose 88.3% for the year.

“Trade patterns are shifting and there’s an increased performance in terms of ton mileages compared to the past so that means a lot of inefficiency in bulk shipping, which raises demand,” said Rico Luman, Transport and Shipping economist at ING Research.

“Demand from China, not only for manufacturing raw material, but also for energy carriers like coal, was actually better than expected previously,” Luman added.

The capesize index fell 18 points, or about 0.5%, to 3,319 points, its lowest in over a month. The contract logged a 189.4% gain for the year.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $153 to $27,523.

Dalian iron ore futures finished higher on Wednesday after a session of directionless trading, as China’s plans to stabilise its property sector outweighed pressure from a decline in global crude steel output.

The panamax inde posted its first gain in nearly a month, rising by 1 point, or 0.1%, to 1,267 points. The contract marked its best annual gain since 2021.

Average daily earnings for panamax vessels, which usually carry 60,000 to 70,000 tons of coal or grain, increased by $14 to $11,405.

Among smaller vessels, the supramax index lost 18 points to 1,144 points. It rose about 23.9% for the year.

Source: Reuter