The Baltic Exchange’s dry bulk sea freight index climbed to its highest in a week on Monday, helped by improved rates for the larger capesize and panamax vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax vessels, gained 93 points, or 3.6%, to 2,645 points, rising for a third straight session.
The capesize index rose 274 points, or 7.6%, to its highest in three weeks at 3,884.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, rose $2,272 to $32,210.
Steel futures prices in China jumped, with hot-rolled coils and construction rebar climbing more than 4% in intraday trade to narrow the gap with spot prices, as traders cheered a marginal improvement in consumption of industrial metals.
The panamax index increased 9 points, or 0.4%, to 2,291, snapping an eight-session long losing streak.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased by $85 to $20,620.
The supramax index lost 2 points to six-month trough at 2,235.
Despite recent volatility in vessel rates, dry bulk spot rates are expected to stabilize in November-December before a “seasonally soft” first quarter of 2022, shipbroker Jefferies said in a weekly note.