Strong Capesize Earnings Push Baltic Index Higher
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Thursday, driven by strong capesize rates.
* The overall index - which factors in rates for capesize, panamax and supramax shipping vessels - rose 46 points, or 2.9 percent, to 1,632 points.
* The capesize index was up 248 points, or 8.9 percent, at 3,041 points.
* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose by $1,026 to $23,514.
* "Cape market continues to be extremely volatile .... Most of the volatility has been in the Pacific market," ship broker Fearnleys said in a weekly report on Wednesday.
* "Market now again seems to be bottoming out and expectations are we might see a rebound again. Market is expected to continue to be volatile, and a longer period of stable increased freight rates only expected in a month or two."
* The capesize index was up 42.2 percent last week, the biggest weekly jump since the week ended April 20. However, rates fell in the beginning of the week and have bounced back in the past two sessions.
* The panamax index was up 19 points, or 1.3 percent, at 1,517 points, levels last seen since March.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $154 to $12,154.
* The supramax index rose 2 points to 994 points. The index rose after falling for 14 straight sessions.
Reporting by Kishan Nair in Bengaluru, additional reporting by Nallur Sethuraman