The Baltic Exchange’s dry bulk freight index, which tracks rates for vessels transporting dry bulk commodities, extended gains on Tuesday, supported by strong demand across all vessel segments.
The main index, which tracks rates for capesize, panamax and supramax vessels, added 79 points, or 4.8%, to 1,729. The index was up for a third straight session.
The capesize index rose 167 points, or 7%, to 2,570.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased $1,511 to $19,804.
Iron ore futures fell for a fourth session, as an accident at a Chinese steel factory triggered concerns over demand for the steelmaking ingredient.
The panamax index gained 49 points, or 3.2%, to 1,570.
Average daily earnings for panamax vessels, which usually carry 60,000 to 70,000 tons of coal or grain, increased $442 to $14,130.
Among smaller vessels, the supramax index firmed 13 points to 983.
Meanwhile, shipping companies have been weighing a return to the critical Asia-Europe trade corridor after vessels were rerouted around southern Africa in late 2023 following attacks in the Red Sea by Yemeni Houthi rebels, who claimed they were motivated by the war in Gaza and the plight of Palestinians.
Source: Reuters