Baltic Index logs weekly gain as All Vessel Segments rise in tandem

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which monitors rates for vessels moving dry bulk commodities, rose on Friday and posted a weekly gain, lifted by broad-based strength across all vessel classes.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 23 points, or 1.2%, to 2,069 points. The index logged a 6.9% weekly gain.

The U.S. and China have imposed new port fees on each other’s vessels, disrupting trade routes and increasing freight costs, and making the high seas a key front in the trade war between the world’s two largest economies.

China’s “new measures, mirroring similar U.S. actions, are set to gradually increase over the coming years, heightening uncertainty across global shipping markets,” Nikos Tagoulis, senior analyst at Intermodal said in a note earlier this week.

The capesize index rose 63 points, or 2.1%, to 3,121 points, and climbed 11.5% for the week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $524 to $25,882.

However, iron ore futures are headed for a weekly loss, with concerns surrounding the demand outlook due to U.S.-China trade tensions coinciding with prospects of rising ore supply for the remainder of the year.

The panamax index rose one point to 1,827 points and saw a 3.6% weekly rise. The index was also at its highest since September 26.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, rose by $13 to $16,446.

Among smaller vessels, the supramax index rose two points to 1,424 points, its highest since October 7, and posted a 1.6% weekly gain.
Source: Reuters