Dry Bulk: Capesizes Rates Top Five-month High

The Baltic Exchange's dry bulk sea freight index rose on Wednesday, as a jump in capesize segment to its highest since mid-July offsets a decline in rates for smaller vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, gained 127 points, or about 8%, to 1,723, its highest since Oct. 25.

The capesize index climbed 432 points, or about 18.3%, to 2,797, its highest level since July 19.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, increased $3,580 to $23,197.

Capesize Atlantic activity set the positive tone with an injection of fresh cargoes out from Brazil, West Africa, and North Atlantic that faced a shortage of prompt tonnage and led to significant week-on-week rises, shipbroker Intermodal said in its weekly note.

Chinese iron ore and steel futures rose on Wednesday, rebounding after two days of losses, with news that China Evergrande Group has resumed work on some property projects bringing relief to a market worried about demand prospects in China.

The panamax index fell 24 points, or about 1.5%, to 1,598, to mark its worst day in four weeks.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $217 to $14,378.

The supramax index shed 28 points at 1,103.

(Reuters - Reporting by Ananya Bajpai; Editing by Shilpi Majumdar)