Baltic index rises for second week as vessel demand rebounds

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, climbed to a two-month peak on Friday, as well as marked its second straight weekly rise, supported by improving demand for capesize and panamax vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 66 points, or 5.8%, to 1,211, its highest since Jan. 3.

The main index rose about 37.2% for the week.

Among other vessel segments, the capesize index rose 195 points, or 19.5%, to its highest in more than six weeks, at 1,195. It was up about 88% for the week.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased $1,614 to $9,910.

Dalian iron ore futures hit an eight-month high on Friday, driven by favourable fundamentals and optimism about future steel demand.

The panamax index, up for the ninth straight session, gained 9 points at 1,565. It was up about 23% for the week.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, were up $81 at $14,087.

Among smaller vessels, the supramax index fell 3 points to 1,189.
Source: Reuters