Baltic Index Rises as Panamax Rates Hits High
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Wednesday as panamax rates surged to their highest in over three years and capesize activity firmed up.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose for the fourth straight session.
The index was up 20 points, or 1.58 percent, at 1,282 points.
The panamax index hit its highest since January 2014. The index was up 50 points, or 3.26 percent, at 1,583 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $396 to $12,676 - the most since January 2014.
The panamax segment is seeing meaningful strength in both the physical and paper markets fueled by streams of fresh activity in both the Atlantic and Pacific markets, Clarksons Platou Securities analysts said in a note on Tuesday.
The capesize index gained 25 points, or 1.12 percent, at 2,252 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $287 at $16,287.
Resurgence of some Eastern Australia coal cargoes for early May loadings has further strengthened sentiment in the region following the aftermath of Cyclone Debbie, according to the Clarksons Platou Securities note.
Among smaller vessels, both supramax index and handysize index rose two points to 893 points and 554 points, respectively.
(Reporting by Swati Verma in Bengaluru)