Baltic index logs best day in nearly 3 months on capesize strength

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The Baltic Exchange’s dry bulk sea freight index rose on Thursday to mark its biggest one-day percentage gain since mid-September, underpinned by a jump in capesize rates.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, gained 127 points, or about 9.1%, to 1,528 – its highest since Oct. 28.

The capesize index climbed 372 points, or about 21.6%, to 2,095, its highest level since Oct. 20.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, increased $3,081 to $17,374.

Overall picture is slightly improving for the big ships, shipbroker Fearnleys said in its weekly note, referring to the capesize segment.

“Atlantic is the bright spot, where in particular West Africa/Far East bauxite trades show promise and push the fronthaul route up a nudge and climbing further.”

Dalian iron ore futures hit a fresh six-month high on Thursday, while the Singapore benchmark price for the steelmaking ingredient climbed above $110 a tonne, propelled by brightening demand prospects in top steel producer China.

The panamax index rose 15 points, or about 0.9% to post its best day in over one week at 1,658.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased $138 to $14,924.

The supramax index shed 3 points to 1,167.

Source: Reuters

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