Baltic Index Rises On Higher Capesize Rates

Suez Canal Bridge. Image by Aashay Baindur

Nov 3 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks freight rates for ships carrying dry bulk commodities, rose on Monday on firmer rates for bigger vessels.

The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, climbed 28 points, or about 2 percent, to 1,456 points.

The Baltic’s capesize index gained 88 points, or 2.48 percent, to 3,640 points.

Average daily earnings for capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, rose $1,043 to $26,768.

“The main driver of the (capesize) strength in our view is the stability in the price of both steel and iron ore in China, which has encouraged more vessel bookings, particularly from Brazil,” said Omar Nokta, analyst at Clarkson Capital Markets.

“Vessel supply has tightened which suggests freight rates will be well-supported in the coming days,” Nokta added.

The Baltic’s panamax index was up 8 points to 1,241 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of 60,000-70,000 tonnes, were up $63 at $9,946. (Reporting by Koustav Samanta in Bangalore; Editing by David Holmes)