The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, notched up its biggest daily jump in seven months, powered mostly by a 43% jump in the larger capesize segment.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, rose 152 points, or 12.1%, its biggest gain since early February, to 1,408.
The capesize index gained 323 points, or 43%, to hit its highest since mid-August at 1,079,
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron-ore used in construction, rose by $2,682 to$8,952.
Dalian iron ore hit a two-week high as trading resumed in top steel producer China after a three-day holiday weekend, with supply concerns and signs of stronger demand supporting prices.
Global shipowner association BIMCO said in a quarterly note on Monday conditions in the dry bulk market were expected to improve for the rest of the year and into 2023 as the EU’s ban on Russian coal will add tonne miles, with Russian coal likely to be replaced by imports from U.S., Australia, Colombia and South Africa.
The panamax index gained about 8%, or 125 points, to 2,074, its highest since July 25.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, gained $1,364 at $18,666.
The supramax index, meanwhile, snapped a 12-session long falling streak, and rose by 11 points to 1,484.