Baltic Index Extends Gains On Rise In Capesize Prices

The Baltic Exchange’s dry bulk maritime transport index, which tracks rates for vessels transporting dry bulk commodities, extended gains on Thursday, supported by an increase in capesize vessel rates.

The main index, which takes into account capesize, panamax and supramax cruise ship rates, rose 11 points, or 0.6%, to 1,961 points.

The capesize index rose 102 points, or 3.6%, to 2,945 points, its highest in a week.

Average daily earnings for large vessels, which typically carry 150,000 tonnes of cargo such as iron ore and coal, increased by $848 to $24,428.

Iron ore futures fell on Thursday, as profit-taking took a toll following a meeting between the leaders of the world’s two largest economies.

President Donald Trump announced on Thursday that he and Chinese President Xi Jinping had reached a deal to reduce tariffs in return for China’s efforts to curb fentanyl trade, resume US soybean imports and defend rare earth exports.

The two presidents also agreed to temporarily suspend port fees for shipping, designed to thwart dominance in shipbuilding, maritime transport and logistics.

Meanwhile, the Panamax index weakened for the fourth consecutive session, falling 36 points or 1.9% to 1,849 points, reaching its lowest level since October 20.

Average daily earnings for Panamax vessels, which typically carry 60,000-70,000 tonnes of coal or grain, fell $319 to $16,643.

“Overall, sentiment (in panamax) has turned cautious, with the market expecting a correction after recent highs,” shipbroker Fearnleys wrote in its weekly note on Wednesday.

Among small ships, the supramax index lost six points to 1,336 points.
Source: Reuters