Baltic Dry Index Nears Three-month Peak on Demand for Smaller Vessels
The Baltic Exchange's main sea freight index rose to its highest level in nearly three months on Thursday, propelled by gains in smaller panamax and supramax vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, increased 14 points to 1,247, its highest since May 24.
The panamax index gained 36 points, or 2.4%, to 1,522, continuing a 17-day winning streak.
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose by $328 to $13,702.
The Panama Canal Authority on Wednesday notified shippers it is extending through Sept. 2 restrictions for vessels to transit through the waterway and keeping the number of vessels authorized to pass per day to a maximum of 32.
"The South Atlantic's demand remains robust in September, with owners in the European community shipowners' associations, confident in asking prices above previous rates," shipbroker Fearnleys said in a weekly note, referring to the panamax segment.
The supramax index rose 47 points, or 5.8%, to 859.
The capesize index, meanwhile, fell 36 points, or 2.1% to 1,665, snapping a two-day gaining streak.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $297 to $13,809.
Dalian iron ore futures climbed to the highest in over three weeks, underpinned by renewed hopes of more policy support from China, following a cabinet meeting.
(Reuters - Reporting by Sherin Elizabeth Varghese; Editing by Varun H K)