The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, scaled its highest in more than 14 months on Tuesday, aided by a jump in capesize rates.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 86 points, or 4.4%, to 2,058.
The capesize index jumped 241 points, or 7.1%, to 3,659 – highest since May 25, 2022.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, logged a sharp increase of $2,000 to $30,348.
Capesize rates have continued to strengthen beyond expectations heading into the fourth-quarter peak season, supported by consistent high iron ore volumes in both basins, analysts at Jefferies said in a note.
Dalian iron ore futures extended gains as traders remained optimistic about the near-term demand outlook amid low inventories and a slower-than-expected pace in falling consumption due to production cuts among some steel mills.
The panamax index snapped its three-session decline by adding 12 points or 0.8% to 1,565.
Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tonnes of coal or grain, gained $112 to $14,087.
Among smaller vessels, the supramax index too gained 8 points, or 0.6%, to 1,277 – highest in near three weeks.
Ukraine shipped 10.5 million metric tons of grains through the Romanian Black Sea port of Constanta in the first nine months of the year, the port authority told Reuters.