The Baltic Exchange’s main sea freight index climbed to its highest in more than one and a half years on Tuesday as strong demand for panamax and supramax vessels offset weakness in the larger capesize segment.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessel ferrying dry bulk commodities, was up 40 points, or 1.6%, at 2,472 – its highest since September 2019.

The capesize index dipped 21 points, or 0.6%, to 3,455.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, were down $178 at $28,652.

Benchmark iron ore futures in Asia jumped more than 3% on Tuesday, extending gains spurred by improved steel profit margins in top steel producer China, and with disappointing output figures from major miners Rio Tinto and Vale adding fuel to the steelmaking ingredient’s record-setting rally.

The panamax index gained 116 points, or 4.8%, to 2,557, its highest level since March 31.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, added $1,042 to $23,010.

The supramax index rose 47 points to 1,925.

Source: Reuters

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