Strong Capesize Segment Helps Baltic Index Close Out Big Week
Sept 6 (Reuters) – The Baltic Exchange’s main sea freight index jumped 5.71 percent on Friday due to increased activity across all vessels, capesizes in particular, for a fifth consecutive day of gains amounting to 19 percent for the week.
* The index climbed 73 points to 1,352 points, its highest level since Jan. 5, 2012.
* The index gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser by factoring in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels.
* The Baltic’s capesize index jumped 139 points, or 5.23 percent, to 2,799 points – its highest since Jan. 3 last year.
* Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up $1,982 at $21,793.
* “We see the recent surge in capesize rates as part of the driver for the rally and increasing confidence that the markets are on a recovering path,” Arctic Securities analyst Erik Nikolai Stavseth said in a note.
* According to GHS Research analyst Omar Nokta, “Much of the activity recently has revolved around iron ore, though there is a gradual increase in grains inquiry as well.”
* The Baltic’s panamax index rose 59 points, or 6.14 percent, to 1,020 points, the highest in a month.
* Average daily earnings for panamaxes, which usually transport 60,000 to 70,000 tonne cargoes of coal or grain, were up $482 at $8,158. (Reporting by Arpan Varghese in Bangalore; editing by Jane Baird)
© 2013 Thomson Reuters.
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