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Jan 18, 2024

Baltic index logs best day in nearly 3 months as larger vessel rates rise

in Dry Bulk Market,International Shipping News07/06/2023 The Baltic Exchange’s

in Dry Bulk Market,International Shipping News07/06/2023

The Baltic Exchange's main sea freight index posted its biggest single-day gain since mid-March on Tuesday, supported by higher rates for capesize and panamax vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, rose 77 points, or 8.2%, to 1,016, its biggest daily percentage gain since March 14.

The capesize index jumped 205 points or 17.4% to 1,383 – its biggest rise in over three months.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased $1,704 to $11,470.

"An expected China stimulus could be a positive near-term trigger," brokerage Jefferies wrote in a note dated Tuesday, referring to capesize index.

China would likely further cut banks’ reserve ratio and interest rates in the second half of this year to support the economy.

Iron ore futures rose to hit their highest levels in about seven weeks.

The panamax index was up 60 points or 5.7% at 1,108.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $539 to $9,973.

Among smaller vessels, the supramax index lost 22 points, or about 2.7%, at 781, to hit its lowest since late February.Source: Reuters