Baltic index hits two-week peak on higher capesize rates

The Baltic Exchange’s main sea freight index rose to a two-week high on Thursday, helped by a jump in capesize vessel rates.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, gained 60 points, or 5.6%, to 1,141, the highest since Aug. 23.

The capesize index jumped 155 points, or nearly 15%, to 1,189.

Average daily earnings for capesize vessels, which typically transports 150,000-tonne cargoes carrying commodities such as iron ore and coal, increased by $1,290 to $9,863.

“Volumes remain consistent for mid-late September C5, East Australia, and Pacific business, contributing to slight improvement in optimism. Slight improvement in volumes on South Africa and India business,” shipbroker Fearnleys wrote about the capesize segment in a weekly note.

The panamax index edged 7 points higher to 1,473.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose by $63 to $13,255.

Among smaller vessels, the supramax index gained 20 points, or 1.9%, to 1,056.
Source: Reuters (Reporting by Brijesh Patel in Bengaluru; Editing by Tasim Zahid)