The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry bulk commodities, climbed on Monday, driven by higher capesize and panamax prices.
The main index, which monitors rates for capesize, panamax and supramax shipping vessels, gained 8 points, or 0.6%, to 1,282.
The capesize index added 24 points or 1.3% to 1,827.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $196 to $15,148.
The panamax index edged four points higher to 1,190, snapping a nine-day losing streak.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was up $39 at $10,712.
“I anticipate a stabilization of the current positive momentum, as Chinese imports across major commodities continue to decline — particularly in soybeans and coal,” said Yiannis Parganas, head of Intermodal’s research department.
China last week raised tariffs on all U.S. imports to 125%, in response to U.S. President Donald Trump’s tariff action. That came on top of the 10% to 15% levies imposed in early March on some $21 billion worth of U.S. agricultural and food products, pushing tariffs on U.S. soybeans to 135%.
Among smaller vessels, the supramax index shed three points, or 0.3%, to 936.
For the near-term outlook for the sector, “bulk carriers are anticipated to face challenges, as rising protectionism is expected to dampen trade activity. At the same time, fleet expansion — driven by new vessel deliveries scheduled for 2025 — is projected to outpace the growth in commodity demand,” Parganas said.
Source: Reuters