The Baltic Exchange’s main sea freight index extended gains for a second-straight session on Thursday, supported by higher rates for capesize vessel segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, gained 45 points, or about 2.9%, to 1,581 – its highest since March 15.

The capesize index rose 176 points, or about 8.4%, to its highest level of 2,276 since late December.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased $1,455 to $18,874.

“Major iron ore routes between Brazil/China and West Australia/China (are) showing solid volumes”, shipbroker Fearnleys stated in a weekly report referring to capesize segment, adding that there is “a significant assistance from coal transactions in both basins.”

The panamax index fell 28 points, or about 1.7%, to 1,612 – its lowest in over four-weeks.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $255 to $14,506.

Among smaller vessels, the supramax index lost 18 points or about 1.5% to 1,185.

Iron ore benchmarks moved in opposite directions, with Dalian futures rebounding after a six-session slump, while prices in Singapore dipped, as uncertainty over demand for the steelmaking ingredient in China kept traders cautious.

Source: Reuters