Capesize Pick-Up Propels Baltic Index
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, registered its first gain in 10 sessions on Friday, buoyed by higher rates for capesize vessels.
- The overall index, which factors in rates for capesize, panamax and supramax vessels, rose 5 points, or 0.45 percent, to 1,122 points but was down 1.8 percent for the week.
- The capesize index gained 28 points, or 2.48 percent, to 1,157 points.
- "It's a very tight market, so just a few incremental cargoes will prop up rates. I don't think there is anything significant about today other than a geographic dislocation of where ships are and where demand is," said Jefferies analyst Randy Giveans. "That said, after a soft first quarter, we do expect rate improvement throughout 2018."
- Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose $184 to $9,064.
- Capesize earnings finished the week on a firmer note because of increased interest in mid-April dates, analysts at ship broker Clarksons Platou Securities said in a note.
- The panamax index shed 6 points, or 0.38 percent, to 1,587 points.
- Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $44 to $12,753.
- The supramax index fell by 1 point to 1,121 points.
- "The dry bulk shipping market outlook is both clear and bright given improving global economic conditions, continued Chinese and Indian preference for high-quality dry bulk commodities and minimal dry bulk carrier fleet growth in the coming years," Giveans said in a separate note.
Reporting by Arpan Varghese in Bengaluru