Baltic Index gains for Tenth Straight Session to more than Two-Month High

LONDON : The Baltic Exchange’s dry bulk sea freight index, which measures rates for vessels moving dry bulk commodities, rose for a tenth straight session on Wednesday to its highest level in more than two months, helped by higher capesize and supramax rates.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, is up 73 points at 1,112 points, its highest since December 10.

The capesize index added 238 points to 1,397 points, a more than six-week high.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, gained $1,972 to $11,584.

Among smaller vessels, the supramax index scaled to a more than nine-week peak as it rose 3 points to 907 points.

The dry bulk market has experienced a positive shift as increased shipments of minerals and grains from Brazil have provided support in the Atlantic basin, Intermodal said in a report on Tuesday.

“Conversely, the impact of Cyclone Zelia has adversely affected coal and iron ore exports from Australia. However, as operations normalize, a rebound in exports is anticipated,” it added.

Iron ore futures prices weakened for a third consecutive session, weighed down by a dour outlook for Chinese steel exports and heightened trade tensions between the United States and top consumer China.

The panamax index fell 28 points to 1,128 points, after snapping its seven-day winning streak in the previous session.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased $244 to $10,156.

Source: Reuters