Capesize gains buoy Baltic sea freight index

FILE PHOTO: Cargo ships navigate the Panama Canal during an organized media tour by Italy's Salini Impregilo, one of the main sub contractors of the Panama Canal Expansion project, on the outskirts of Colon city, Panama May 11, 2016. REUTERS/Carlos Jasso/File Photo

The Baltic Exchange’s main sea freight index edged up on Thursday, as stronger rates for capesize vessels overshadowed declines in the panamax and supramax segments.

The overall index, which factors in rates for capesize, panamax and supramax vessels, gained 5 points, or 0.2%, to 2,354.

The capesize index added 76 points, or 3.24%, to 2,419.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased by $631 to $20,061.

Dalian iron ore rebounded in afternoon trade on Thursday erasing earlier losses as Chinese markets were lifted by President Xi Jinping’s pledge to take more effective measures to achieve the country’s economic and social development goals.

The panamax index dipped 65 points, or 2.32%, to 2,732 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000-70,000 tonnes, decreased $578 to $24,592.

The supramax index inched 9 points lower to 2,466.

Interest in the smaller ships has been particularly big during the last 12 months, accounting for 39.6% of all contracting in this period alone, the Baltic and International Maritime Council said in a note.

Source: Reuters