Baltic Index Ends Second Straight Week of Gains

dry bulk ship
Friday’s session marked 11 straight days of gains for the Baltic Dry Index. Photo credit: Shutterstock/tcly

Reuters

Feb 26 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying industrial commodities, rose further on Friday on stable rates for smaller vessels and panamaxes.

The overall index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertiliser was up two points at 327 points.

The index, which has fallen over 30 percent so far this year, touched an all-time low of 290 points on Feb. 10.

The capesize index was down 5 points at 177 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 $61 to $2,396.

Freight rates for capesize bulk carriers on key Asian routes are likely to remain around current levels as the market has too much tonnage for current cargo volumes, ship brokers said.

The dry bulk sector has taken a beating from the slowdown in Chinese business at a time when the sector is struggling with huge overcapacity.

The panamax index rose 6 points to 352 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, was up $45 at $2,823.

Among smaller vessels, the supramax index was up 5 points at 333 points, while the handysize index rose 3 points to 212 points. (Reporting by Apeksha Nair in Bengaluru)

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