Baltic Index hits Over One-Week Peak on Higher Capesize Vessel Rates

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which measures shipping rates for vessels transporting dry bulk commodities, rose to a more than one-week peak on Thursday on higher rates for capesize vessels.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was up 38 points, or 3%, to 1,305, its highest levels since May 8.

The capesize index gained 123 points, or 7.46%, to 1,771.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, climbed $1,021 to $14,691.

Capesize rates were buoyed by “fresh Guinean bauxite exports to China, due to increasing demand for aluminium production,” said Yiannis Parganas, head of Intermodal’s research department.

Iron ore futures held near a five-week high, boosted by improved demand outlook from the Sino-U.S. trade truce, although weaker credit data from China limited gains.

The panamax index shed 8 points, or 0.6%, to 1,287, its lowest since April 17.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, lost $69 to $11,585.

Among smaller vessels, the supramax index was down 2 points at 975 points.

Source: Reuters