Baltic index rises on capesize push
The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, gained on Tuesday as capesize rates touched their highest level in over a year.
The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels rose 81 points, or 2.9%, to 2,889 – a more than ten-year high.
The capesize index jumped 254 points, or 6%, to 4,516, its highest level since mid-September 2019.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, were up $2,106 at $37,453.
Asia’s iron ore benchmarks rose on Tuesday on solid demand and soaring steel prices, while data showing strong profit growth at China’s industrial firms added momentum to the steelmaking raw material’s rally.
“The current strength of the capesize market is closely linked to the strong performing Brazilian iron ore exports so far this year,” said Peter Sand, chief analyst for shipping association BIMCO, in a note.
The panamax index dropped 36 points, or 1.4%, to 2,550.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, eased $322 to $22,949.
The supramax index was up 21 points at 2,129.
Source: Reuters (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Amy Caren Daniel)