reuters logoJune 12 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose for the fifth straight day on Wednesday, as rates for both capesize and panamax vessels climbed.

* The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose 22 points or 2.67 percent to 847 points.

* The Baltic’s capesize index was up 48 points or 3.48 percent to 1,427 points.

* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $503 to $6,300. Capesize earnings have risen about 21 percent over the past one week.

* The panamax index climbed 31 points or 3.99 percent to 808 points.

* Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, were up $258 to $6,437 on Wednesday.

* “The Summer lull is creeping up on dry bulk shipping demand following the successful South American grain season. Fortunately, solid demand is keeping spirits up in the dry bulk industry, while the severe extent of overcapacity is pushing the date for a full-blown recovery of earnings into a somewhat distant future,” said Peter Sand, chief shipping analyst with ship association BIMCO.

“For now the market is getting more and more spot focused, as no owners want to commit tonnage for longer terms at offered levels.” (Reporting by Koustav Samanta in Bangalore; editing by James Jukwey)

(c) 2013 Thomson Reuters, Click For Restrictions

Tagged with →  
Share →
  • Barry Parker

    Tempest in a teapot- certainly with Capesize, and maybe with Panamax. In such articles, it would be useful to provide some insight into daily breakevens for a Capesize (opcost maybe $8K/day, cap cost maybe $7K/day depending on what price vessel was bought at). On Panamax, opcost maybe $6k/day and cap cost maybe $5k/day). When you do these comparisons, you see where the market needs to get for the owners to start making $. And, then, if they are slow steaming now and they speed up, then what?

Sign up for the gCaptain Newsletter!

Over 31,000 people receive the gCaptain email newsletter every single day. Get the maritime and offshore industry headlines that matter sent straight to your inbox. Or LIKE us on Facebook!

We will not share your email address with anybody for any reason