The Baltic Exchange’s dry bulk sea freight index extended gains for a ninth straight session on Tuesday, tracking firm rates across all its vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax vessels, advanced 117 points, or 3.6%, to 3,352, touching its highest level since Nov. 1.
The capesize index rose 284 points, or 6%, to 4,983, its highest since Oct. 26.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased by $2354 to $41,324.
Recent gains in capesizes can be attributed to increased demand witnessed in key trade routes of Brazil-China and Australia-China, Allied Shipbroking said in a weekly note.
Benchmark Dalian and Singapore iron ore futures surged, leading a broad rally in ferrous materials, as investors cheered a liquidity-boosting measure to support economic growth in top steel producer and consumer China.
The panamax index added 41 points, or 1.3%, to hit a more than one-month high of 3,253.
Average daily earnings for panamaxes, which carry 60,000-70,000 tonne coal or grain cargoes, increased by $371 to $29,275.
Augmented interest for both mineral and grains shipments in the Atlantic basin has led to “significant gains” in the panamax segment, the shipbroker noted.
The supramax index gained 36 points to 2,488, its highest since Nov. 4.
Source: Reuters