Baltic index sees best day in nearly 2 months as vessel rates rise
The Baltic Exchange’s dry bulk sea freight index posted its best day in nearly two months on Monday, boosted by stronger rates across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax vessels, gained 114 points, or 4.1% to 2,881, a peak since Nov. 3.
The main index marked its highest single-day rise since Oct. 6.
Dry bulk rates are expected to be profitable in 2022 due to a growth in demand across all dry bulk commodities, shipbroker Jefferies said in a weekly note, adding shipping congestion was also likely to remain elevated well into the next year.
The capesize index rose 237 points, or 6.1%, to its highest in a month at 4,143.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased $2,286 to $29,313.
Steel futures in China traded in a tight range, weighed down by demand fears due to the new Omicron coronavirus variant, while coking coal and coke prices fell after a plunge in thermal coal futures.
The panamax index rose 114 points, or 4.4%, to a two-week high at 2,735.
Average daily earnings for panamaxes, which carry 60,000-70,000 tonne coal or grain cargoes, increased by $1,027 to $24,613.
The supramax index added 11 points to 2,327, its highest in three weeks.
Source: Reuters (Reporting by Kavya Guduru in Bengaluru; Editing by Vinay Dwivedi)