Baltic index climbs to 1-yr high on robust capesize demand

The Baltic Exchange’s dry bulk sea freight index, climbed to a 1-year high on Friday as capesize rates firmed for a fifth consecutive week.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 102 points, or 5.6%, to 1,929.

The main index rose 13.4% for the week to log its fifth consecutive weekly rise.

The capesize index, added 327 points, or about 11%, to 3,309, scaling to late May 2022 peaks.

The index has advanced by about 34% this week to clock its best weekly performance in over three-and-a-half months.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased by $2,718 to $27,445.

Benchmark iron ore futures, listed on the Dalian Commodity Exchange and the Shanghai Futures Exchange, will resume trading on Monday.

The panamax index slipped 20 points, or 1.3%, to 1,572. It snapped its 5-week gaining streak, down about 8%.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, fell $178 to $14,151.

Among smaller vessels, the supramax index slipped 3 points to 1,233 points.
Source: Reuters (Reporting by Daksh Grover in Bengaluru, Editing by Vinay Dwivedi)