Gains in Panamax Vessel Rates Lift Baltic Dry Index
The Baltic Exchange's main sea freight index edged up on Monday as rates for the panamax segment, ferrying coal and grain cargoes, hit a more than three-month high that also helped offset a dip in the larger capesize vessel segment.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels ferrying dry bulk commodities, edged up by 6 points to 1,135.
The panamax index extended its winning streak to a 14th straight session to gain 28 points, or 2.1%, to 1,365. It was highest since May 15.
Average daily earnings for panamax vessels, which usually carry cargoes of about 60,000 tonnes to 70,000 tonnes, rose by $244 to $12,281.
A logjam of commercial vessels seeking to pass through the drought-hit Panama Canal, one of the world's busiest trade passages, has prompted shippers to seek alternative routes.
Also boosting the main index, the supramax index rose 17 points to 745.
The capesize index fell 22 points, or 1.4% to 1,570, its lowest in nearly three weeks.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $183 to $13,017.
Iron ore futures fell as expectations of steel output cuts in China and weakness in the country's property segment weighed on sentiment.
(Reuters - Reporting by Sherin Elizabeth Varghese; Editing by Shweta Agarwal)