Baltic Index Rises on Strong Capesize Rates

July 16, 2018

© raisondtre / Adobe Stock
© raisondtre / Adobe Stock

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Monday, driven by strong rates for capesize vessels.

* The overall index - which factors in rates for capesize, panamax and supramax shipping vessels - rose 29 points, or 1.7 percent, to 1,695 points, levels last seen in December.

* The capesize index was up 82 points, or 2.6 percent, at 3,238 points, highest since December.

* Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose by $700 to a seven-month high of $24,987.

* "We continue to believe the dry bulk shipping market is likely to improve in the coming quarters due to firm supply/demand fundamentals," Jefferies analysts wrote in a weekly client note on Monday.

* The panamax index was up 2 points at 1,529 points, levels not seen since March.

* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $11 to a near four-month high of $12,244.

* The supramax index rose 3 points to 998 points.

Reporting by Kishan Nair in Bengaluru

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