The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, jumped to a near one-month high on Wednesday, helped by gains across all vessel segments.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 63 points to 904 points, its highest since January 21.
The capesize index gained 110 points to 867 points, an over two-week high.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, added $905 to $7,187.
Dalian iron ore futures prices extended gains to a second session, supported by expectations of improving demand and fewer portside arrivals that would lead to large destocking at major ports in top consumer China.
“Market sentiment has been positive with iron ore prices averaging above $100/t. Steel production will likely remain subdued amid increasing trade tariff challenges,” ANZ said in a note.
The panamax index added 62 points to reach 1,104 points, the highest since November 21.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, increased by $557 to $9,932.
Among smaller vessels, the supramax index was up 26 points at 839 points, an over one-month peak.
Source: Reuters