Baltic index logs best day in almost two months on capesize demand


The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, on Tuesday posted its biggest single-day gain since late July, propelled by a jump in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 87 points, or 6.1%, to 1,526.

The capesize index added 193 points, or 11.03%, to 1,942, its highest level since June 26.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $1,600 to $16,103.

“In the Pacific, overall activity moved on a good pace, with coal demand providing fair support, especially at the early part of the week,” shipbroker Allied wrote in a weekly note, referring to the capesize segment.

“In the Atlantic, we noticed a tighter tonnage availability, that helped build better momentum in terms of rates in most areas.”

The panamax index rose 27 points, or 1.6%, to 1,693, its highest in more than five months.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $243 to $15,238.

Iron ore futures extended declines as mounting domestic supply and ongoing demand concerns amid a lingering property slump dampened investor sentiment.

Among smaller vessels, the supramax index added 46 points, or 3.7%, to 1,286.

A cargo vessel carrying grain has departed Ukrainian Black Sea port of Chornomorsk for the first time since the grain deal collapsed.

Source: Reuters


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