Rising rates across all segments push Baltic Index to one-week peak

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight Index, which monitors rates for vessels moving dry bulk commodities, rose to a one-week high on Monday, helped by gains across all vessel segments.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, added 9 points, or 0.6%, to 1,652 points, its highest level since March 17.

The capesize index extended gains, rising 14 points, or 0.5%, to 2,690 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $121 to $22,311.

Iron ore futures strengthened as higher demand for the key steelmaking ingredient in top consumer China outweighed worries of steel production cuts.

The panamax index rose by 14 points, or nearly 1%, to 1,389.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained $125 to $12,504.

Among smaller vessels, the supramax index ticked higher to 1,013 points, a level not seen in over four months.

Elsewhere, U.S. and Russian officials held talks in Saudi Arabia aimed at making progress towards a broad ceasefire in Ukraine with Washington eyeing a separate Black Sea maritime ceasefire deal before securing a wider agreement.

Source: Reuters