Capesize gains buoy Baltic sea freight index
The Baltic Exchange’s main sea freight index rose on Wednesday as a third straight session of capesize gains overshadowed weeks-long losing streaks in the panamax and supramax segments.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, rose 28 points, or 1.8%, to 1,592 points.
The capesize index gained 112 points, or 7.4%, at a one-week high of 1,622 points on its best day since July 15.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $934 at $13,455.
The panamax index was down for the 12th straight session, shedding six points, or 0.3%, at 1,932 points, its lowest in over three weeks.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $59 to $17,385.
Ukraine’s grain, oilseed, vegetable oil exports rose 22.7% in July versus June to 2.66 million tonnes thanks to higher wheat and barley shipments, the agriculture ministry said.
“Given that the situation worsens around the Black Sea area and the materialized deal will be undermined, a further downside for grain trade is more likely within 2H2022,” said Intermodal analyst Chara Georgousi in a weekly note on Tuesday.
“On the contrary, if the operation continues relatively smoothly, the world grain trade could see relief within 2H2022 as a result of an increase in tonne-days demand.”
The supramax index extended losses, falling 22 points to 1,614 points, its lowest since Feb. 4.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber)