Baltic Index Jumps 7%
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, surged about 7 percent on Wednesday to register its biggest one-day percentage gain since November 2016, boosted by improving capesize activity.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 72 points, or 6.8 percent, at 1,124 points, the highest since March 26.
The index has risen for the eighth straight session.
"We are starting to see additional Brazilian iron ore exports, especially to China, which was lacking in March," said Jefferies analyst Randy Giveans.
"With heavy rain and weather disruptions, there was some kind of backlog. That's why over the last 1-2 weeks we have seen the capesize and Baltic index going up on a daily basis."
The capesize index gained 250 points, or 21.7 percent, at 1,402 points, a peak since March 12.
This was the biggest one-day percentage rise for the index since April 2016.
Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $1,932 to $11,620.
The panamax index was down 24 points, or 1.8 percent, at 1,329 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $192 to $10,670.
The supramax index rose four points to 1,022 points.
The index has risen for the eighth straight session.
"We are starting to see additional Brazilian iron ore exports, especially to China, which was lacking in March," said Jefferies analyst Randy Giveans.
"With heavy rain and weather disruptions, there was some kind of backlog. That's why over the last 1-2 weeks we have seen the capesize and Baltic index going up on a daily basis."
The capesize index gained 250 points, or 21.7 percent, at 1,402 points, a peak since March 12.
This was the biggest one-day percentage rise for the index since April 2016.
Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $1,932 to $11,620.
The panamax index was down 24 points, or 1.8 percent, at 1,329 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $192 to $10,670.
The supramax index rose four points to 1,022 points.
Reporting by Vijaykumar Vedala in Bengaluru
