Baltic Index logs second straight Weekly gain on Higher Capesize Demand

LONDON : The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels carrying dry bulk commodities, gained on Friday and registered its second consecutive weekly gain, driven by strong capesize rates.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 70 points to 1,229 points, its highest since December 3. The index rose more than 18% for the week.

The capesize index added 245 points to 1,818 points, an over-twelve-week high. It climbed more than 58% this week, best week since January 13.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $2,028 to $15,074.

Iron ore futures prices fell and were set for monthly losses, pressured by U.S. tariff concerns and mounting trade frictions against Chinese steel exports.

The panamax index was down 29 points to 1,063 points, declining for fourth straight session. The index fell 6.7% during the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, dropped $262 to $9,569.

Among smaller vessels, the supramax index shed 8 points to 895 points and posted a second straight weekly loss.

Source: Reuters