Strong Vessel Demand Lifts Baltic Dry Index to Second Weekly Gain
The Baltic Exchange's dry bulk sea freight index rose on Friday and posted a second consecutive weekly gain on the back of stronger demand across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, rose to an over three-weeks high as it added 62 points, or 3.5%, to 1,820. It was up 10.8% this week.
The capesize index added 99 points, or 3.7%, to 2,763. The index rose 6.8% for the week.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, gained $817 to $22,913.
Dalian iron ore futures dropped as property woes in China continued to linger and on news of a limit on trading volumes, though losses were limited by signs of recovering steel demand.
The panamax index rose 74 points or 4.1%, to 1,874 and gained 22.5% for the week.
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, added $672 to $16,868.
Among smaller vessels, the supramax index was up 27 points or 2.3% to 1,205. It rose 7.1% for the week.
Some 151 ships have used Ukraine's new Black Sea shipping corridor since it was set up in August, the Interfax-Ukraine news agency reported on Friday, citing a senior government official.
(Reuters - Reporting by Hissay Ongmu Bhutia)