Capesize bounce propels Baltic dry bulk index to best week in six
The Baltic Exchange’s main sea freight index tracking rates for ships ferrying dry bulk commodities rose on Friday and notched up its best week in six, powered mostly by gains in the largest capesize segment.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 45 points, or about 4% to 1,186, its highest since Aug. 22.
The main index also logged an 11.4% gain for the week, its best performance since late July.
The capesize index gained 100 points, or 8.4% to 1,289. The index advanced about 25% this week, its best in six.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $830 to $10,693
But iron ore futures fell on Friday, surrendering gains made earlier this week, after China’s state planner pledged to step up regulatory oversight of the market following another price rally in the steelmaking ingredient.
The outlook for iron ore demand beyond China’s traditional September-October peak season is clouded by likely steel production cuts intended to curb carbon emissions.
The panamax index rose 16 points to 1,489.
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $150 to $13,405.
Among smaller vessels, the supramax index gained 23 points to 1,079 points.
Ukraine has started exporting grain via Croatian seaports, aiming to broaden its export routes while its Black Sea ports are blocked, a senior Ukrainian official said on Thursday.
Some of the world’s largest ports may be unusable by 2050 as rising sea levels hit operations, a study showed on Friday.
Source: Reuters (Reporting by Arpan Varghese in Bengaluru)