Baltic index rises as smaller vessels lend support

Source :


The Baltic Exchange's dry bulk sea freight index rose on Thursday, buoyed by gains for panamax and supramax vessels that countered a dip in rates for the larger capesize segment.

* The overall index (.BADI), which factors in rates for capesize, panamax and supramax vessels, gained 24 points, or 1%, to 2,678 points.

* The capesize index (.BACI) shed 46 points, or 1.2%, to 3,776.

* Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell $390 to $24,355.

* Despite a decrease in Brazil-China iron ore trade volumes, recent iron ore price developments and news around the coal market could suggest an end-year rally, shipbroker Fearnleys said in a weekly note dated Wednesday.

* Iron ore stretched a rally into a fifth straight session, supported by improved sentiment towards China's property sector.

* "If the BDI (main dry bulk index) continues to slump, it should not be seen as a sign that global logistics are improving or that supply chain bottlenecks are easing, it will merely reflect weakness in China's commodity demand," Capital Economics said in a note, attributing a recent slump in the index to a sharp drop in Chinese steel production.

* The main index saw steady declines for most of October and into early November, and hit a five-month low on Nov. 17.

* The panamax index (.BPNI) rose 111 points, or 4.7%, to 2,489.

* Average daily earnings for panamaxes, which carry 60,000-70,000 tonne coal or grain cargoes, increased by $999 to $22,404.

* The supramax index (.BSIS) added 29 points to its highest level in two weeks at 2,284.

* The number of supramax vessels heading to major loading countries in Asia are close to all-time highs, pointing to a bullish outlook for the segment, Fearnleys added.


Reporting by Kavya Guduru in Bengaluru; Editing by Pravin Char

Our Standards: The Thomson Reuters Trust Principles.

Related Regular News: