Baltic Index Continues to Rise

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, extended rise on Thursday on steady rates for panamaxes and smaller vessel segments.

 

The overall index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser was up seven points at 342 points.

 

The index has lost about 97 percent of its value from a peak of 11,793 in May 2008, but has slightly recovered after touching an all-time low of 290 points on Feb. 10.

 

The capesize index fell five points to 166 points, recording a new all-time low.

 

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $55 to $2,236.

 

Freight rates for capesize bulk carriers on key Asian routes are likely to remain flat as the number of vessels for hire outpaces cargo demand, ship brokers said.

 

The panamax index rose 10 points to 374 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $84 to $3,004.

 

Among smaller vessels, the supramax index climbed 18 points to 363 points, while the handysize index was up seven points at 227 points.