The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, rose supported by strong rates across all vessel segments on Friday, and registered its first weekly gain in five.
The index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 22 points to 815 points, its highest since January 24. The index rose more than 7% for the week.
The capesize index was up 28 points at 840 points. However, the index was down 7% this week, extending losses for the fourth consecutive week.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $231 to $6,964.
The panamax index added 6 points to 1,035 points, hitting close to a one-month high and was up over 28% during the week.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, increased by $59 to $9,318.
“Panamax freight rates strengthened across the board, but particularly for the trade route between the west coast of North America and East Asia, amid strong grain shipments,” said Filipe Gouveia, Shipping Analysis Manager at BIMCO.
Among smaller vessels, the supramax index was up 28 points at 677 points, posting gains for the fourth time this week.
Dalian iron ore futures prices hit a four-month high on Friday, logging weekly gains as steel demand in top consumer China recovered after the Lunar New Year holidays, while support for the property sector also buoyed sentiment.
Seasonal recovery of freight rates is expected, despite weak first-quarter rates which were pressured by the Chinese New Year and weather disruptions, Gouveia said.
Forward Freight Agreements suggest rates may stay below 2024 levels, with a weaker supply/demand balance anticipated for 2025, he said.
Source: Reuters
