Baltic index jumps to 12-year high on higher rates across vessels
The Baltic Exchange’s main dry bulk sea freight index hit a 12-year high on Friday en route to its first weekly rise in three, propelled by gains across vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, gained 60 points, or 1.4% at 4,275, its highest since November 2009.
The main index registered a 10.6% weekly increase.
The capesize index added 116 points, or 1.8%, to 6,420. The index rose 15.3% this week, its best weekly performance in four.
It climbed to a 12-year peak on Sept. 14, with analysts crediting the rally to weather-related disruptions and port congestion, especially in China.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased $959 to $53,240.
Futures prices for China’s steelmaking raw materials faltered on Friday, with benchmark iron ore contract leading losses, as Beijing mulls to include more cities under its environmental controls.
The panamax index rose for a seventh straight session, adding 52 points, or 1.4%, to 3,904, its highest in three weeks.
The panamax segment saw a rise of 8.6% for the week.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased $473 to $35,138.
Among smaller vessels, the supramax index added 24 points to 3,307.
The index registered a 4.3% weekly rise.
Source: Reuters (Reporting by Rahul Paswan in Bengaluru; Editing by Maju Samuel)