The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, on Monday hit its highest in more than four months, helped by a nearly 10% jump in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 58 points, or 4.2%, to 1,439, its highest level since May 16.

The capesize index added 147 points, or 9.2%, to 1,749 — extending its winning streak to a ninth straight session.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $1,219 to $14,503.

Iron ore prices fell, following a week of significant gains, as negative headlines about China’s property sector prompted caution.

The panamax index rose 10 points to 1,666, its highest level in almost five months.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $89 to $14,995.Among smaller vessels, the supramax index added 19 points, or 1.6%, to 1,240.

Ukraine’s Danube Shipping Company has asked Romania’s Constanta Black Sea port to allow ship-to-ship grain transfers which would almost double its barge export capacity.

The key exporter’s 2023 grain output is seen at up to 56 million metric tons but a blockade of its major Black Sea ports since Russia’s invasion has constrained shipments.

Source: Reuters