Baltic Exchange Sea Freight Index Hits One-Month High Driven by Capesize Rate Surge

The Baltic Exchange’s main sea freight index, which monitors rates for ships carrying dry bulk commodities, reached a one-month high on Monday primarily due to increased capesize rates. The index, which considers rates for capesize, panamax, and supramax vessels, rose by 45 points to 1,093 points, marking its highest level since December 11. Specifically, the capesize index saw a significant increase of 167 points to 1,615 points, reaching a six-week peak. This surge in rates translated to higher average daily earnings for capesize vessels, which transport large cargoes like iron ore and coal, with earnings rising by $1,381 to $13,391.

On the other hand, the panamax index experienced a decline of 27 points to 926 points, marking its fourth consecutive session of decrease. Average daily earnings for panamax vessels, which typically carry loads of coal or grain, decreased by $242 to $8,332. Similarly, the supramax index also saw a decrease of 10 points to 809 points, hitting its lowest level since August 15, 2023. This downward trend in the panamax and supramax sectors contrasts with the positive performance of capesize rates.

In addition to the fluctuations in sea freight rates, there are developments in the crude oil market as Chinese and Indian refiners are exploring alternative sources of crude due to new U.S. sanctions on Russian producers and tankers. These sanctions are expected to have a significant impact on shipments to Moscow’s major customers. Traders noted that these sanctions are likely to be the most effective yet in curbing crude oil shipments to Russia’s key markets.

Source