Baltic index rises for 3rd day as larger vessel rates gain

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The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, extended gains for a third consecutive session on Thursday, buoyed by higher rates for the larger vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 17 points, or 0.92%, to 1,869.

The capesize index gained 32 points, or 1.09%, to 2,977, reaching its highest level since May 13.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes of iron ore and coal, among others, increased $265 to $24,689.

Meanwhile, iron ore futures prices rebounded after falling for five straight sessions, with sentiment lifted by some portside restocking ahead of a holiday in top consumer China and market talk of a possible steel output cut.

The panamax index added 29 points, or 1.7%, at 1,731, reaching its highest level in over a week.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, rose $266 to $15,583.

Among smaller vessels, the supramax index fell by 3 points, or 0.24%, to 1,255, marking its lowest level since Feb 28.

Parts of the river Rhine in south Germany were still closed to cargo shipping after heavy rain in the region increased water levels, navigation authorities said.

Source: Reuters