Baltic index hits one-week high on capesize strength

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The Baltic Exchange’s dry bulk sea freight index rose to a one-week high on Tuesday, as gains in the capesize segment overshadowed declines in rates for smaller vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 8 points, or 0.5%, to 1,685, posting a one-week high.

The capesize index rose 51 points, or 2.3%, to 2,402, hitting its highest level since July 30.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were up $419 at $19,918.

Iron ore futures prices drifted lower on Tuesday as wider losses induced production cuts among steelmakers in top consumer China and lingering high portside inventories weighed on sentiment.

The panamax index lost 19 points, or 1.1%, to 1,678, marking its lowest level in over three weeks.

Average daily earnings for panamax vessels, which usually carries about 60,000-70,000 tons of coal or grain cargo, decreased $171 to $15,102.

Among smaller vessels, the supramax index was down 10 points, or 0.8%, to 1,320.

Source: Reuters