Baltic Index Climbs For Third Straight Session On Firm Rates For Larger Vessels

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The Baltic Exchange’s dry bulk sea freight index gained for a third straight session on Monday, buoyed by a rise in capesize and panamax vessels rates.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 15 points, or 1%, to 1,518, its highest since Jan. 11.

The capesize index rose to a more than one-week high. It rose 28 points or 1.25%, to 2,272.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes such as iron ore and coal, increased by $234 to $18,842.

Iron ore futures were in a tight range, with the Dalian benchmark ticking up and Singapore prices receding, as investors pondered the demand outlook in the absence of an expected monetary easing in top consumer China.

The panamax index climbed 26 points, or 1.7%, to 1,576 points, extending its gaining streak to the sixth consecutive session.

Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tons of coal or grain cargo, was up by $240 to $14,186.

Among smaller vessels, the supramax index was down 3 points to 1,027.

Iranian-backed Houthi militants in Yemen have stepped up attacks on vessels in the Red Sea, impacting a shipping route vital to East-West trade.

Consequently, the number of tankers in the Suez canal fell over 50% in the week starting Jan. 15 compared to the previous week, according to shipping data provider AXSMarine.

Source: Reuters