Baltic Index hits one-month high on stronger rates across vessels

LONDON : The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, rose to a one-month high on Tuesday, buoyed by rising rates across all vessel segments.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 35 points to 841 points, its highest since January 22.

The capesize index gained 32 points to 757 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, added $273 to $6,282.

Iron ore futures rebounded as improved downstream steel demand and expectations of more stimulus from top consumer China boosted sentiment.

Iron ore cargoes were disrupted recently by normal weather-related headwinds in East Australia and South America and by a cyclone in Western Australia. However, several ports/terminals have re-opened, which is boosting activity and overall sentiment in the dry bulk sector, Jefferies said in a note.

The panamax index edged 45 points higher to 1,042 points, the highest since January 8.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, increased by $399 to $9,375.

Among smaller vessels, the supramax index was up 32 points at 813 points, an over one-month peak.

Source: Reuters