Baltic index posts third straight weekly gain on capesize strength

The Baltic Exchange’s dry bulk sea freight index rose to a more than four-month peak on Friday and registered its third consecutive weekly gain on higher rates for capesize vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 24 points, or 1.5%, to 1,593 – highest level since May 11.

The main index increased by 15.4% for the week.

The capesize index, added 76 points, or about 3.8%, to 2,083, hitting its highest in over four months.

The index advanced by 30% this week, highest since the June 23 week.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $628 to $17,274.

Iron ore futures increased, with the Singapore benchmark returning above $120 per metric ton, boosted by China’s policy support for its economy and after Rio Tinto paused production at a Pilbara mining site due to an incident.

The panamax index edged down by 11 points, to 1,685. It was up by 1.8% for the week, a fourth straight weekly gain.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $101 to $15,164.

Among smaller vessels, the supramax index gained 5 points to 1,355 points.

The first big ship carrying grain from a Ukrainian Black Sea port has set sail since Moscow quit a deal in July to allow exports.
Source: Reuters (Reporting by Daksh Grover in Bengaluru; Editing by Shailesh Kuber)