Baltic index snaps 8-day losing streak on stronger vessel demand

Ships used to carry grains for export are seen next to a dredging boat (L) on the Parana river near Rosario, Argentina, January 31, 2017.  Picture taken January 31, 2017. REUTERS/Marcos Brindicci

The Baltic Exchange’s dry bulk sea freight index gained on Wednesday, after falling for eight straight sessions, supported by higher rates across all vessel segments.

The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose by 37 points, or 0.8%, to 4,751.

The capesize index rose 46 points, or 0.6%, to 7,275, breaking a losing streak of eight sessions.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, rose by $378 to $60,333.

Chinese coking coal and coke futures opened 9% lower to hit daily trading limits, as the country’s top economic planner pledged to take all necessary measures to bring the coal market back to a reasonable level.

The panamax index added 70 points, or 1.7%, to 4,236, its highest in three and a half months.

“Panamax is expected to be further supported in the current week, driven primarily by the Atlantic, where the freight ceiling is being set higher by both Supramax and Capesize,” shipbroker Intermodal said in a weekly research note dated Tuesday.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased by $634 to $38,128.

The supramax index added 8 points to an all-time high of 3,618, according to Refinitiv Eikon going back until 2017.

Source: Reuters

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