The Baltic Exchange’s dry bulk sea freight index gained on Friday to squeeze out a second weekly increase, as higher rates for smaller vessels countered weakness in the capesize segment.

The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was up 19 points, or 1.3%, to 1,518. It rose 1% for its second consecutive weekly gain.

Freight going through the Suez Canal has dropped by 45% in the two months since attacks by Yemen’s Houthis led shipping groups to divert freight, disrupting already strained maritime trading routes, according to the UN’s trade agency.

The capesize index added 49 points, or 2.4%, to 2,135 but fell nearly 5% for the week.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes such as iron ore and coal, increased by $410 to $17,708.

Prices of iron ore and other ferrous commodities dropped, but most were on track for a weekly gain as traders found comfort in optimism over top consumer China’s policy support to shore up its fragile economy.

The panamax index rose 6 points, or 0.4%, to 1,696 points. It was up more than 9% for the second straight week, with a ten-session winning streak.

Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tons of coal or grain cargo, was up by $54 to $15,263.

More ships carrying grain were diverted from the Suez Canal to sailings around the Cape of Good Hope this week after attacks on vessels in the Red Sea, shipping analysts said.

Among smaller vessels, the supramax index rose 3 points to 1,065 up 3.4% for its best week since Dec. 1.
Source: Reuters

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