Baltic Index records best week in 3 months

Source: MARINELINK

The Baltic Exchange’s main sea freight index hit its highest in more than three weeks and recorded its biggest weekly gain in about three months as demand improved for dry bulk commodities.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose 18 points, or 1.54 percent, to its highest since Jan. 30 at 1,185 points.

Baltic index, which tracks rates for ships carrying dry bulk commodities, gained over 9 percent this week, registering its biggest weekly gain since the week ending Dec. 1.

“Following seasonal weakness in the dry bulk sector resulting from Chinese New Year, we believe the outlook for the dry bulk shipping market is both clear and bright,” Jefferies analysts wrote in a note on Thursday.

Improving global economic conditions, continued Chinese demand and likely minimal fleet growth in coming years would be the main drivers for the dry bulk market, Jefferies said.

The panamax index rose for the eighth straight session, up 43 points, or 2.99 percent, at 1,481 points.

It jumped over 16 percent this week to mark its biggest weekly gain since June last year.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $344 to $11,873.

The capesize index lost 3 points, or 0.17 percent, to 1,722 points.

The index, however, was up about 7 percent this week.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were up $12 to $13,524.

Among smaller vessels, the supramax index rose 21 points to 892 points, while the handysize index rose 5 points to 534 points.

Source: MARINELINK

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