Baltic Dry Index Logs Second Straight Monthly Gain

The Baltic Exchange's main sea freight index gained on Monday, posting its second straight monthly gain, supported by an uptick in rates for capesize and panamax vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 17 points, or 1.5%, to 1,127. The index was up 3.3% for the month.

The capesize index earned 43 points, or about 2.4%, to 1,873, its highest level since late June. The index has gained 10% for the month.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $353 to $15,533.

Iron ore futures edged up after Chinese authorities announced measures to increase consumption, although a sluggish manufacturing sector in China and lingering concerns about steel demand capped the gains.

The panamax index was up by 21 points, or 2.2%, to 996. However, the index fell 3.3% in July to register its fourth consecutive monthly decline.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $190 to $8,964.

Among smaller vessels, the supramax index lost 7 points at 719.

(Reuters - Reporting by Daksh Grover; Editing by Milla Nissi)