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....
July 12 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Friday on firmer panamax and capesize bookings for grain and iron ore.
* The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose 10 points, or 0.88 percent, to 1,149 points.
* The Baltic’s capesize index was up 11 points, or 0.54 percent, at 2,058 points.
* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $120 to $14,182.
* The panamax index gained 35 points, or 3.3 percent, to 1,097 points.
* Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, were up $308 to $8,447. The move higher has been helped by grain bookings from South America.
“Once the early requirements are cleared, hire levels are expected to start easing again,” broker Braemar Seascope said. (Reporting by Shrutee Sarkar in Bangalore and Jonathan Saul in London; editing by Jane Baird)
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