Baltic Index Climbs to Over 1-month High on Demand for Larger Vessels
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose for a fifth straight session on Tuesday, boosted by higher demand for larger vessels.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, rose by 23 points, or 2%, to 1,150, its highest level since June 27.
The capesize index added 47 points, or 2.5%, to 1,920, its highest in six weeks.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes including iron ore and coal, increased by $391 to $15,924.
"All regions were showing an improvement, but it was off the back of a much more active Atlantic basin that these gains found ample support," shipbroker Allied wrote about the capesize segment in a weekly note on Monday.
Dalian iron ore futures edged up slightly, while Singapore iron ore futures fell with the market responding cautiously to China's latest policy guidelines and as oversupply concerns persisted.
An uptick in capesize and panamax rates helped the main index register a second straight monthly gain in July.
The panamax index gained 38 points, or 3.8%, to 1,034, continuing its gaining streak for a fifth straight session.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $343 to $9,307.
Among smaller vessels, the supramax index fell by 10 points to 709.
(Reuters - Reporting by Sherin Elizabeth Varghese in Bengaluru;Editing by Vinay Dwivedi)