Baltic Index posts weekly gain on Higher Capesize Rates

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for ships carrying dry bulk commodities, rose on Friday to post a weekly gain on higher capesize vessel rates.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was up 65 points, or 4.8%, at 1,418, its highest in four weeks since May 2. The index also logged a 5.8% weekly gain.

The capesize index (.BACI) added 218 points, or 10.6%, to 2,277, to post a weekly gain of 20%. The index reached its highest level since April 3 on Friday.

Average daily earnings for capesize vessels (.BATCA), which typically transport 150,000-ton cargoes such as iron ore and coal, climbed $1,811 to $18,885.

“There is an increase in rates for coal transportation from Australia and Bauxite rates being higher just before the rainy season in August in Guinea are together driving capesize higher,” said Yiannis Parganas, head of Intermodal’s research department.

“With regards to capesize rates, we might see small increases but it will be difficult for prices to reach or exceed the $20,000 mark,” Parganas added.

Iron ore futures prices ticked lower and posted weekly losses amid softening demand for the steelmaking ingredient in China, while traders braced for further bouts of uncertainty around trade.

The panamax index (.BPNI) slid 18 points, or 1.6%, to 1,119, and lost 10% during the week.

Average daily earnings for panamax vessels (.BPWT), which usually carry 60,000-70,000 tons of coal or grain, lost $163 to $10,071.

Among smaller vessels, the supramax index (.BSIS) dipped 5 points to 951, down 3% for the week.

Source: Reuters