Baltic Exchange Dry Bulk Index Rises on Capesize and Panamax Rate Increases

The Baltic Exchange’s dry bulk sea freight index saw an increase on Monday, driven by rising rates in larger vessel segments. The index, which includes rates for capesize, panamax, and supramax shipping vessels, rose by 4 points to reach 994 points. Specifically, the capesize index experienced a significant increase of 17 points, reaching 1,132 points. This resulted in average daily earnings for capesize vessels, known for transporting large cargoes like iron ore and coal, rising by $144 to $9,388.

Iron ore futures also saw a rise on Monday, supported by expectations of restocking by Chinese steelmakers, despite concerns about demand in the upcoming year and high portside inventories. The panamax index also increased by 4 points to 980 points, with average daily earnings for panamax vessels, which typically carry coal or grain cargoes, rising by $38 to $8,820. However, the supramax index saw a decrease of 8 points, reaching its lowest level since August of the previous year at 932 points.

Overall, the dry bulk sea freight index from the Baltic Exchange showed positive movement on Monday, particularly in larger vessel segments. The rise in rates for capesize and panamax vessels contributed to the overall increase in the index, while the supramax index experienced a decline. Factors such as iron ore futures and expectations of restocking by Chinese steelmakers influenced the market, despite concerns about future demand and high portside inventories.

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