Baltic index logs weekly gain on buoyant capesize rates

The Baltic Exchange’s main sea freight index slipped on Friday, but ended higher for the first week in three on stronger capesize vessel rates.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, was down 3 points, or 0.1%, at 2,085.

The index was up 0.6% this week.

The capesize index climbed 125 points, or 4.5%, to an over two-month peak of 2,883.

The index was up 20.43% for the week, marking a second consecutive weekly gain, and its best since March 5.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, were up $1,037 at $23,911.

Dalian iron ore edged lower on Friday, as steel futures in Shanghai stretched their losses, but the raw material was headed for weekly gains on expectations that demand will hold up despite China’s current steel production restrictions.

The panamax index slipped 157 points, or 7.3%, to 2,003, its lowest level since Feb. 15.

The index fell 19.4% this week, marking a third weekly dip in a row, and its worst since July 2020.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, fell $1,418 to $18,026.

The supramax index lost 6 points to 1,780, and was down for the third week in a row.
Source: Reuters (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Shinjini Ganguli)