The Baltic Exchange’s main dry bulk sea freight index extended its rally on Wednesday as robust demand and port congestion propelled the capesize index above 10,000 points for the first time in more than 13 years.
The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 238 points, or 4.4%, to 5,647, its highest since September 2008.
The gains in the main index were mostly driven by a jump in the capesize segment, which added 723 points, or 7.4%, to 10,475, a more than 13-year peak.
“Port congestion in China, general changes to trade patterns that have occurred this year, high Brazilian iron ore exports along with demand for thermal coal is driving the capesize market,” BIMCO Chief Shipping Analyst Peter Sand said.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, rose $5,993 to $86,870.
“The main index and capesize market will mostly have an upward trend for the rest of the year, mainly driven by coal imports to meet demand in India and China,” Sand said, adding that seasonal factors may prompt a slight dip in the first quarter of 2022.
The panamax index, meanwhile, fell 15 points, or 0.4%, to 3,903, its lowest in almost three weeks.
Average daily earnings for panamaxes, which ferry 60,000 tonne to 70,000 tonne coal or grain cargoes, decreased $129 $35,130.
The supramax index rose 6 point to 3,388.