Baltic Index Jumps on Capesize Rates
The Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, rose on Tuesday, boosted by a surge in capesize rates following a positive iron ore outlook.
* The Baltic index, which tracks rates for capesize, panamax and supramax vessels, rose 75 points, or 5.6%, to 1,426 points.
* The index posted its steepest daily percentage rise since July 4.
* The capesize index jumped 237 points, or 8.7%, to 2,953.
* "The main factor contributing to the strong development is the positive sentiment in the iron ore price," said Jo Ringheim, equity research analyst at Arctic Securities.
* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $1,757 to $22,272.
* Demand for high-quality iron from China, falling iron ore inventories, increasing iron ore spot activity in Brazil, high Australian exports are some of the factors supportive of the market sentiment, Ringheim added.
* The supramax index rose 16 points to 783.
* The panamax index inched lower by 8 points to 1,111.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, edged $65 lower to $8,923.
(Reporting by Nakul Iyer in Bengaluru; Editing by Shinjini Ganguli)