Improved Rates for Larger Vessels Lifts Baltic Dry Index
The Baltic Exchange's dry bulk sea freight index edged up on Wednesday, buoyed by an uptick in capesize and panamax vessel rates.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, ticked up to 1,683.
The capesize index gained 16 points, or 0.8% to 2,116. The index was still hovering around a 3-month low.
Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes of iron ore and coal, among others, increased $138 to $17,553.
"Cargo injections have been low, and the outlook for future demand remains uncertain, presenting some red flags which contrast with the positive FFA (Forward Freight Agreements) levels projected for the next quarter," Intermodal Research Analyst Chara Georgousi said in a weekly note on Tuesday referring to capesize vessel segment.
The panamax index was up by 2 points, to 1,847.
Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, added $14 to $16,622.
Among smaller vessels, the supramax index edged lower to 7 points to 1,478.
Meanwhile, Yemen's Houthis said on Tuesday they targeted the MSC Orion container ship in a drone attack in the Indian Ocean as part of their ongoing campaign against international shipping in solidarity with Palestinians against Israel's military actions in Gaza.
(Reuters - Reporting by Daksh Grover; Editing by Vijay Kishore)