Baltic index surges to 11-year peak on robust demand

Panamax-bulk-carrier

The Baltic Exchange’s main sea freight index soared to its highest in 11 years on Thursday as rates across all vessel segments were lifted by strong demand for dry bulk commodities.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, added 91 points, or 2.9%, to 3,267, its highest level since June 2010.

The capesize index was up 202 points, or 5%, at a one-month high of 4,212.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, increased $1,672 to $34,930.

“Bull mood continues with modest but significant daily gains on very robust fundamentals and positive outlook for commodities,” ship broker Fearnleys said in a weekly note, referring to the capesize segment.

The panamax index was up 39 points, or 1.1%, at 3,558, the highest since June 2010.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, gained $351 to $32,022.

The supramax index rose 41 points to 2,754.

The Atlantic basin is stronger compared to Pacific, which is driven by the strong East Coast South America and Gulf of Mexico soybean and corn export season, Fearnleys said.

Source: Reuters

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