Baltic Index gains on Stronger Vessel Rates

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index rose on Wednesday to its highest level in more than a week, as rates increased across all vessel segments.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, was up 39 points, or 3.1%, to 1,300 points, its highest since April 8.

The capesize index added 71 points, or about 4.3%, to 1,732.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $588 to $14,362.

Dalian iron ore futures hit their highest levels in nearly three weeks on Tuesday, underpinned by hopes of U.S.-China trade talks and strengthening seasonal demand for the steelmaking ingredient.

The panamax index rose for the sixth straight session, gaining 41 points, or 3.2%, to 1,333.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was up by $367 to $11,996.

Among smaller vessels, the supramax index marked its highest level in over two weeks, adding 10 points, or 1.1%, to 964.

Source: Reuters