The Baltic Exchange’s main sea freight index had its best session in nearly six months on Friday thanks to a rise in rates for bigger vessel segments, while capesizes notched their biggest weekly gain in more than two years.
* The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was up 84 points, or 8.38%, at 1,086 points. The index recorded a weekly gain of 0.4%, having posted declines in the previous six.
* The capesize index gained for the second consecutive day, rising 264 points, or about 56.3 %, to 733 points. It posted a 78% weekly gain, its best since June 19, 2020, breaking a six-week losing streak.
* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel making ingredient iron-ore used in construction, rose by $2,189 to $6,076.
* “We remain positive that demand from infrastructure projects should improve in the coming months, supported by China’s policies. However, China’s real estate crisis will remain an obstacle to iron ore and steel demand,” BIMCO’s Chief Shipping Analyst Niels Rasmussen said in a note.
* A recovery would be a boon for especially Capesizes that have recently suffered due to increased supply following a reduction in congestion, Rasmussen added.
* China will take more steps to support the economy, including increasing funding support for infrastructure projects among others, state media quoted the cabinet as saying last week.
* The panamax index was up 41 points, or 3.3%, at 1,271 points, on its best day in over a month. It posted a 7.4% weekly fall, its sixth consecutive weekly dip.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, gained $373 to $11,442.
* The supramax index fell for the sixth consecutive session, losing 45 points to 1,514 points.
Source: Reuters (Reporting by Harshit Verma in Bengaluru; Editing by Aditya Soni)
