Oct 16 The Baltic Exchange's main sea freight
index, tracking rates for ships carrying dry
commodities, rose on Tuesday as rates continued to rise for
capesize and panamax ships.
The overall index, which reflects daily freight market
prices for capesize, panamax, supramax and handysize dry bulk
transport vessels, rose 4.25 percent to 981 points.
The Baltic's capesize index rose 7.3 percent to
Average daily earnings for capesizes, which usually
transport 150,000-tonne cargoes such as iron ore and coal, were
up $1,409 to $12,965.
Over the past three weeks there were clearing up of tonnage
lists in both Atlantic and Pacific basins and there has been
minimal open vessels available, creating lot of optimism for the
owners for higher rates, said George Lazaridis, head of research
with Greek shipbroker, Intermodal.
However, over the long term, Lazaridis said there are lots
of negative sentiments for the capesizes like slower steel
production, decrease in demand for shipping iron ore due to
uncertainty over Chinese demand and falling prices.
Spot iron ore slipped on Tuesday as lower steel prices in
top market China discouraged steel mills from buying more of the
raw material after some replenished stockpiles last week.
Iron ore shipments account for around a third of seaborne
volumes on the larger capesizes, and brokers said price
developments remained a key factor for dry freight.
The panamax index rose 2.15 percent to 904 points,
with average daily earnings up $158 at $7,213.
Panamaxes typically transport 60,000-70,000-tonne cargoes of
coal or grain.
Demand for coal fixtures across both the Pacific and
Atlantic basins drove panamax rates high, Lazaridis said.
Average daily earnings for handysize ships were down $11
at$6,522, while those of supramax ships were down $143 at
(Reporting by NR Sethuraman in Bangalore; editing by James