Higher Activity Across All Vessels Pushes Up Baltic Index

Bulker file photo

June 14 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose for the seventh consecutive day Friday to their highest in two-and-a-half months on higher activity across all vessels.

* The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose 27 points or 3.09 percent to 900 points. This was the biggest one-day jump in almost five months.

* The Baltic’s capesize index was up 53 points or 3.57 percent to 1,537 points, their highest since Jan. 25.

* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $651 to $7,627.

* The panamax index climbed 26 points or 3.12 percent to 859 points.

* Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, were up $208 to $6,845.

* “Despite abysmal earnings levels (for dry bulks), asset values have improved – leading us to take the view that ‘something has got to give’ – either rates come up or asset values will fall back down. We think the former is the case and maintain our take that there will be an improvement in freight earnings in H2/13 to support the rise in asset values,” Arctic Securities analyst Erik Nikolai Stavseth said in a note. (Reporting by Arpan Varghese in Bangalore; Editing by Marguerita Choy)

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