The Baltic Exchange’s main sea freight index rose to a more than four-month high on Monday, helped by stronger rates across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 113 points, or 4.2%, to 2,831 points, the highest since mid-December last year.
The capesize index rose 291 points, or 10.1%, to 3,185 points, its highest in more than four months.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased $2,410 to $26,412.
Capesize vessel rates averaged higher in both the Atlantic and Pacific regions, driven by increased activity on the Australia-to-China and the Asia-to-Europe routes, Jefferies said in a weekly note on Monday.
“The coal trade to Europe has strengthened as EU buyers look to source alternative supplies from non-Russian sources. We expect further strength ahead,” the note added.
Meanwhile, Chinese iron ore futures plunged as much as 7% on Monday, as stringent COVID-19 restrictions prompted traders to be cautious and fuelled concerns over global demand.
The panamax index gained 58 points, or 1.8%, to 3,233 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $521 to $29,093.
The supramax index was up 3 points at 2,732 points.