The Baltic Exchange’s dry bulk sea freight index rose on Tuesday, snapping three sessions of declines, thanks to a pick up in rates across all vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, added 29 points, or 1.4%, to 2,069 points.
The capesize index gained 73 points, or 4.5%, to 1,690 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $605 to $14,019.
However, “firmer fuel price levels, coupled with the potential regrouping of viable trade routes, given the current risks, will add a bearish pressure on the overall market in the near term,” Allied Shipbroking said in a weekly note, in reference to the capesize segment.
Oil prices surged on Tuesday, while Chicago wheat futures hit their highest level in almost 14 years as traders feared prolonged disruption to global supplies following Russia’s invasion of Ukraine.
Benchmark Dalian and Singapore iron ore futures, meanwhile, surged to two-week highs, underpinned by improving factory activity data in China and bets for additional stimulus measures in the world’s top steel producer.
The panamax index was up two points, or 0.08%, at 2,601 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $21 to $23,410.
Among smaller vessels, the supramax index added 15 points to 2,443 points.