The Baltic Exchange’s main sea freight index on Tuesday extended gains for a sixth straight session as demand for capesize vessels shipping iron ore surged.
* The Baltic index, which tracks rates for ships ferrying dry bulk commodities, rose 4.3%, or 83 points, to 2,011, its highest since January 2014. The index has surged about 60% this year.
* The index extended gains for a sixth straight session, mainly driven by strong demand for vessels that ship iron ore from Brazil.
* A restart of Vale SA’s Brucutu mine in Brazil in June, which was shut in early February after a tailings dam burst killing more than 240 people, has prompted increased demand from the country.
* The capesize index rose 244 points, or 6.6%, to 3,968 points, its highest since December, 2017.
* Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, rose $1,578 to $30,157.
* China’s daily crude steel output rose to record levels in June, according to Reuters calculations, even as anti-pollution restrictions pushed whole-month production slightly lower.
* The panamax index rose 60 points, or 3%, to 2,052 points, its highest since December 2013.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose $477 to $16,396.
* Tight spot market for capesize vessels has driven iron ore shippers to book panamax vessels, driving rates higher, analysts said.
The supramax index edged 17 points higher to 905 points.