The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, rose for an eighth straight session to hit a more-than-one-month high on Monday, supported by gains across all vessel segments.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose by 21 points to 1,002 points, its highest since January 16.
The capesize index added 48 points to 1,039 points, an over four-week peak.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, rose $404 to $8,620.
Dalian iron ore futures prices snapped a four-day winning streak as increasing levies on Chinese steel dampened demand prospects for the key steelmaking ingredient, though decreasing portside inventories in China limited the fall.
The panamax index gained 7 points to reach 1,177 points, the highest since November 18.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, increased by $68 to $10,595.
“Over the past 12 months, tonne-mile demand from Ukrainian and Russian cargoes has increased 3% year-on-year combined. Unlike volumes, tonne-mile demand was already higher than pre-war levels during the second year at war because sanctions on Russian coal increased sailing distances,” says Filipe Gouveia, shipping analysis manager at BIMCO.
“The demand increase has primarily benefitted ships in the panamax and supramax segments, whereas capesize demand remains below pre-war levels,” Gouveia added.
Among smaller vessels, the supramax index (.BSIS) rose straight for a 15th consecutive session, adding 9 points to 895 points.
Source: Reuters
