- The Baltic Exchange’s dry bulk sea freight index showed stability.
- Capesize Vessels increase.
- Daily earnings for Panamax vessels dropped.
Baltic Exchange’s Dry Bulk Sea Freight Index Overview
The Baltic Exchange’s dry bulk sea freight index showed stability, despite varied movements across vessel classes. The overall index, incorporating capesize, Panamax, and supramax rates, experienced a minor 0.1% decrease to reach 2,093. However, it closed in 2023 with a substantial 38% increase, reports Hot Copper.
Capesize Vessels Surge
The capesize index soared by 2.5% to 3,484, marking its highest point in over a week and a remarkable 50% rise for the year, the best performance since 2017.
Average daily earnings for capesize vessels, typically transporting heavy cargo like iron ore and coal, saw a notable increase of $719, reaching $28,896.
Panamax and Supramax Trends
Conversely, the Panamax index faced a decline of 1.9% to 1,872 but managed to secure a yearly gain of 24% in 2023. Average daily earnings for Panamax vessels, known for carrying moderate-sized cargoes, dropped by $332 to $16,851.
The supramax index continued its 14th consecutive session decline, losing 61 points to settle at 1,308. Nevertheless, it exhibited a yearly increase of nearly 29% in 2023.
Geopolitical Impact on Shipping
Iranian-backed Houthi militants in Yemen escalated attacks on Red Sea vessels, leading to operational halts for certain shipping companies through the Suez Canal.
Maersk, Denmark’s prominent shipping company, is contemplating the resumption of vessel transit through the Suez Canal via the Red Sea or redirecting them around Africa following an attack on one of its ships over the weekend.
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Source: Hot Copper
