Baltic index snaps 3-day losing streak on demand for larger vessels
The Baltic Exchange’s dry bulk sea freight index snapped its three-session losing streak on Tuesday, supported by higher rates for capesize and panamax vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, rose 17 points, or about 1.3%, to 1,340.
The capesize index gained 38 points, or 2.5%, to 1,540, its biggest daily percentage gain in almost a week.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, increased $317 to $12,774.
Dalian and Singapore iron ore futures slipped on Tuesday in volatile trade, as traders tempered their optimism about prospects of top steel producer China moving further away from its stringent zero-COVID policy.
The panamax index was up 19 points, or about 1.2%, at 1,657, its highest in nearly three weeks.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased $171 to $14,912.
“The main contributor of this trend of late was the more fervent Atlantic basin, nourished by relatively ‘healthy’ demand for tonnage, on the back of grain and mineral cargoes coming to market,” shipbroker Allied said in its weekly note, referring to the panamax segment.
The supramax index (.BSIS) remained unchanged at 1,158.