The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, rose for the sixth straight session to hit a one-month high on Thursday, supported by gains across all vessel segments.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 37 points to 941 points, its highest since January 20.
The capesize index gained 50 points to 917 points, a more than three-week peak.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, rose $416 to $7,603.
Iron ore futures gained as strong steel consumption data from top consumer China boosted sentiment, shifting investor focus to prospects of growing ore demand and spurring a wave of short covering.
Following a decline in both iron ore and grain exports from Brazil, coupled with subdued activity in the Atlantic and a slowdown in Asia due to the Chinese New Year holidays, we are now witnessing a turnaround in freight rates driven by seasonal effects, said Yiannis Parganas, head of Intermodal’s research department.
The panamax index added 40 points to reach 1,144 points, the highest since November 18.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, increased by $367 to $10,299.
“A potential peace deal could lead to the reopening of Ukrainian ports, boosting grain exports and increasing dry bulk supply,” Parganas added.
The United States has been conducting talks with Russia on a peace deal to end the war in Ukraine.
Among smaller vessels, the supramax index rose straight for the 13th consecutive session, adding 27 points to 866 points.
Source: Reuters