Baltic Dry Index Hits Over Three-month High

The Baltic Exchange's main dry bulk sea freight index hit its highest in more than three months on Wednesday, powered mostly by gains in the larger vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels rose 55 points, or 4.5%, to 1,290, its highest level since May 24.

The capesize index rose for sixth straight session, gaining 86 points, or 6.5%, to 1,416.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $716 to $11,743.

Iron ore futures were up for a third straight session, buoyed by expectations of pre-holiday restocking demand from steelmakers in top consumer China, although gains were limited by a weakening steel market.

The panamax index gained 48 points, or 3.1%, to 1,623, its highest level in over 4 months.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose $434 to $14,610.

The Panama Canal could further reduce the maximum number of vessel transits authorized per day if a drought that has hit the waterway this year continues, its administrator said on Tuesday.

Among smaller vessels, the supramax index added 38 points or 3.4% to 1,156 points.

(Reuters - Reporting by Daksh Grover; Editing by Shweta Agarwal)