The Baltic Exchange’s main dry bulk sea freight index rose to a 12-year high on Monday, as rates across vessel segments jumped on robust demand and global shipping constraints.
The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 29 points at 4,304, its highest since Nov. 24, 2009.
Analysts have attributed the recent rally in the dry bulk market to global shipping constraints and an overall rebound in commodities demand.
“Dry bulk ships are spending a lot more time waiting outside of ports, both because there are so many ships and also due to the new (pandemic-led) quarantine measures around the world,” said Emily Stausboll, shipping analyst at BIMCO, that adding various economic stimulus measures are also helping dry bulk demand.
The factors that have been driving the market “won’t disappear overnight,” and (seasonally) dry bulk market tends to perform best at the end of the year” before easing off into the start of next year, Stausboll added.
The capesize index increased 67 points, or 1%, to 6,487, a peak since December 2009.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased $555 to $53,795.
Among smaller vessels, the supramax index rose for a sixth straight session, adding 12 points to 3,319, highest in over two-weeks.
The panamax index rose for an eighth straight session, adding 12 points, or 0.3%, to 3,916, it highest in over two-months.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased $102 to $35,240.