Baltic index gains on higher rates for smaller vessels

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The Baltic Exchange’s dry bulk sea freight index edged up on Wednesday as gains in the panamax and supramax segments offset a dip in capesize rates.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, gained 29 points, or 1.1%, to 2,575 points.

The panamax index gained 161 points, or 5.2%, to 3,272 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $1,451 to $29,450.

The capesize index dipped 75 points, or 3.5%, to 2,100.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $629 at $17,412.

“The Capesize sector saw a steep fall in its Atlantic market activity amidst the geopolitical tension and its effect on the trade economy,” shipbroker Intermodal said in a weekly note published on Tuesday.

Construction material steel rebar and hot-rolled coils, used in the manufacturing sector, were trading higher amid supply concerns after top steelmaking city Tangshan implemented a temporary lockdown.

The supramax index rose 33 points to 3,016 points.

Source: Reuters