The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, rose, supported by strong rates across all vessel segments on Friday, and registered its first weekly gain in four.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, gained 198 points, or 13.5%, to 1,663 points, hitting its highest since June 25. The contract was up 2% for the week.

The capesize index rose 440 points, or 26.4%, to 2,104. The contract logged its highest daily percentage gain since March 1, 2023. However, it was down over 10% for the week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased $3,654 to $17,453.

Iron ore futures rose and were headed for a third weekly gain, underpinned by renewed hopes that top consumer China’s crackdown on a price war will pave the way for another round of reforms to curb steel overcapacity.

The panamax index rose 137 points, or 8%, to 1,860, marking its highest level since June 20 last year. The contract was up 13.4% for the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained $1,236 to $16,743.

“The Panamax market has gained significant upward momentum this week, primarily fueled by a robust Atlantic basin,” shipbroker Fearnleys wrote in a weekly note on Wednesday.

“This Atlantic strength has had a positive spillover effect, stimulating the previously quiet Indonesian market and lending support to a firmer tone in the Pacific.”

Among smaller vessels, the supramax index added 37 points, or 3.1%, to 1,219.
Source: Reuters