According to an article published in Reuters, the Baltic Exchange’s main sea freight index rose to its highest since December 2013.
Demand for vessels shipping iron ore
- This demand has been driven by demand for vessels shipping iron ore in the Atlantic, pushing Capesize and Panamax indices to multi-year highs.
- The Baltic index, which tracks rates for ships ferrying dry bulk commodities, rose 3.2%, or 66 points, to 2,130, its highest since mid-December, 2013. The index has surged about 68% so far this year.
Extended gains
- The index extended gains for an eighth straight session, mainly driven by strong demand for vessels that ship iron ore from Brazil into China.
- A restart of Vale SA’s Brucutu mine in Brazil, which was shut in early February after a tailings dam burst, has prompted increased demand from the country.
Capesize index
- The Capesize index rose 161 points, or 3.9%, to 4,256 points, its highest since December 2017.
- Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, rose $1,146 to $32,219.
- Vale’s big-style comeback on the Brazil/China run combined with markedly increasing transatlantic volumes make up the main driver (of capesizes), according to shipbroker Fearnleys.
- With a high number of Capes, Newcastlemaxes, and Valemaxes going out of service for drydock/scrubber fitting, the following weeks/months are expected to see present climate maintained and further strengthened.
Panamax index
- The Panamax index rose 49 points, or 2.4%, to 2,134 points, its highest since December 2010.
- Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose $392 to $17,053.
- The tight spot market for Capesize vessels has driven iron ore shippers to book Panamax vessels, driving rates higher, analysts said.
- The supramax index edged 25 points higher to 953 points.
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Source: Reuters
