Higher Rates For Bigger Vessels Perk Up Baltic Index

June 12 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose for the fifth straight day on Wednesday, as rates for both capesize and panamax vessels climbed.

* The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, rose 22 points or 2.67 percent to 847 points.

* The Baltic’s capesize index was up 48 points or 3.48 percent to 1,427 points.

* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $503 to $6,300. Capesize earnings have risen about 21 percent over the past one week.

* The panamax index climbed 31 points or 3.99 percent to 808 points.

* Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grains, were up $258 to $6,437 on Wednesday.

* “The Summer lull is creeping up on dry bulk shipping demand following the successful South American grain season. Fortunately, solid demand is keeping spirits up in the dry bulk industry, while the severe extent of overcapacity is pushing the date for a full-blown recovery of earnings into a somewhat distant future,” said Peter Sand, chief shipping analyst with ship association BIMCO.

“For now the market is getting more and more spot focused, as no owners want to commit tonnage for longer terms at offered levels.” (Reporting by Koustav Samanta in Bangalore; editing by James Jukwey)

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