Baltic index headed for weekly gain on panamax strength

LONDON : The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, was on its way to registering a weekly gain as higher rates across panamax segment offset losses in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, edged up 1 point to 1,977 points, adding over 4% so far in the last week.

The capesize index slipped 18 points, or 0.6%, to 3,235 points. However, the index gained more than 4% last week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $154 to $26,826.

The panamax index was up 10 points to 1,538 points, its highest level in over a month. The index was up over 7% so far this week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, rose $89 to $13,842.

Iron ore futures prices edged higher on Friday but logged a weekly loss, as traders weighed prospects of fresh monetary stimulus from China against the top consumer’s muted economic recovery, while firmer global supply also weighed on prices.

Among smaller vessels, the supramax index was up 13 points to 1,289.