Baltic index rally gains steam on rising demand across vessels

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The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose for a sixth straight session on Tuesday, scaling its highest in more than a decade on stronger demand across vessel segments.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose 1.4%, or 51 points, to 3,657, the highest since June 2010.

The capesize index jumped 98 points, or 2%, to 4,950, a peak since May 11.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose by $812 to $41,049.

The panamax index advanced 33 points, or 0.9%, to its highest since June 19 at 3,617.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased by $299 to $32,552.

Among smaller vessels, the supramax index rose about 27 points to an all-time high of 3,146, according to Refinitiv Eikon data available since 2017.

Several Chinese ports are facing congestion as vessels due to call at Ningbo are being diverted and cargo processing is slowed partly due to stricter disinfection measures under China’s “zero-tolerance” coronavirus policy.

Source: Reuters