High Shipping Costs Are Here to Stay, Says Bloomberg
By Henry Ren (Bloomberg) Stubbornly high shipping expenses for businesses are getting sealed into contracts for the next 12 months, forcing companies to pass the extra costs on to consumers....
Feb 21 (Reuters) – The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Tuesday for a fifth straight session on higher rates for capesizes and smaller vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, closed up 21 points, or 2.77 percent, at 778 points, its highest level in almost three weeks.
The index is expected to test a resistance at 774 in a week, a break above which could open the way towards the next resistance at 888, according to Reuters technical analyst Wang Tao.
The capesize index gained 65 points, or 8.22 percent, to close at 856 points, a two-week high.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $512 at $7,008.
The panamax index was down 3 points, or 0.33 percent, at 906 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $19 to $7,279.
Among smaller vessels, the supramax index was up 17 points at 764 points, while the handysize index rose 6 points to 402 points. (Reporting by Nithin Prasad in Bengaluru; Editing by Maju Samuel)
(c) Copyright Thomson Reuters 2017.
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