The Baltic Exchange’s dry bulk sea freight index, which monitors rates for vessels moving dry bulk commodities, rose to a one-week high on Wednesday, driven by stronger capesize and panamax vessel rates.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 16 points to 1,963 points, its highest since October 1.
The capesize index rose for its fourth straight session, adding 39 points to 2,924 points, hitting an over one-week high.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $325 to $24,252.
Last week, China’s state iron ore buyer had asked the country’s steelmakers and traders to pause purchases of iron ore cargoes from Australian miner BHP.
“In dry bulk, substituting Brazilian ore for Australian tons stretches Capesize cycles, tightens Atlantic tonnage at the margin, and increases weather and congestion risk premia around key Brazilian terminals,” analysts at Intermodal said in a note on Tuesday.
“In agriculture, the deepening reliance on Brazil reshapes Panamax and Supramax employment patterns, sustaining trans-equatorial flows even outside traditional peaks,” the report added.
The panamax index, rose 30 points to 1,695 points, highest level since October 1.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, rose by $264 to $15,252.
Among smaller vessels, the supramax index fell 14 points to 1,411 points, an over one-month low.
Source: Reuters