Baltic index hits one-week high as larger vessel rates rise

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The Baltic Exchange’s dry bulk sea freight index rose to a one-week high on Thursday, helped by higher rates for the capesize and panamax vessel segments.

The overall index .BADI, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 103 points, or 6.5%, to 1,690 points.

The capesize index gained 273 points, or 12.4%, to 2,475, hitting it highest level since March 28.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes such as iron ore and coal, increased by $2,257 to $20,523.

We see a moderate level of volumes from miners, some operators, and tenders all primarily for late April dates… Volumes out of East Australia and other Pacific businesses have picked up, with enquiries ranging from second half of April prompt dates till mid-May dates,” shipbroker Fearnleys wrote in a weekly note on Wednesday.

Iron ore futures prices drifted higher as the latest soft data from top consumer China triggered renewed hopes of more stimulus in the second quarter to underpin its economy.

The panamax index gained 46 points or 2.8% to 1,677 points.

Average daily earnings for panamax vessels, which usually carries about 60,000-70,000 tons of coal or grain cargo, rose $412 to $15,092.

Among smaller vessels, the supramax index edged up about 0.1% to 1,261 points.

Source: Reuters