Baltic Dry Index Inches Higher on Firm Capesize Demand
The Baltic Exchange's dry bulk sea freight index edged higher on Thursday, buoyed by an uptick in capesize and panamax vessel rates.
The overall index, which factors in rates for capesize, panamax and supramax vessels, gained 7 points to 2,296
The capesize index rose 55 points, or 2.4%, to 2,356
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, rose by $451 to $19,535
Iron ore futures rose on Thursday, on expectations of a recovery in Chinese demand for the steelmaking raw material and steel products after the Beijing 2022 Olympics next month
The panamax index edged 10 points higher to 3,013
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, rose by $94 to $27,117
"This week started with uncertainty for the Indonesian coal export after the government put a ban during the weekend," shipbroker Fearnleys said in a weekly note dated Wednesday
"Though most of the drama has calmed down, both charterers and owners for this trade have avoided new business before the situation is clearer.
Major Indonesian coal miners have sought exemptions from a coal export ban put in place at the start of the year as the costs of having scores of ships stranded offshore continue to mount
The supramax index slipped 41 points to its lowest level since April 2021 at 2,124.
(Reporting by Brijesh Patel; Editing by Shinjini Ganguli)