The Baltic Exchange’s main sea freight index, which tracks rates to ship dry commodities, rose to its highest in nearly nine months at the end of last week after surging iron ore and coal export business to Asia sustained a rally in recent days.
The overall index rose 3.45 per cent or 58 points to 1,740 points, in a third day of gains and was at its highest since December 24. The index had hit a near seven-month high last month.
Brokers said firmer coal and iron exports from Australia to China had boosted the Capesize market. Coal imports into Japan had also picked up, while freight derivatives contract buying had added further upside momentum on the larger Capesize ships.
Earlier in August, the index, which gauges the cost of shipping commodities, including iron ore, coal and grain, dropped to its lowest in more than three months after falling for 18 consecutive sessions. It has remained erratic and is still over 30 per cent down from the same period last year.
The Baltic’s Capesize index rose 5.99 per cent last Friday, with average daily earnings jumping to $ 23,899 a day and at their highest since December 20 last year. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
Spot iron ore prices were steady on Friday, as miners held offers firm given an anticipated pick-up in Chinese steel demand as well as the continued tightness in supply from India, pushing up global indexes to nearly four-month highs.
Inventories of imported iron ore at major Chinese ports rose 0.5 per cent to a record 95.59 million tonnes by the end of the week.
The Baltic’s Panamax index rose 0.37 per cent. Panamaxes usually transport 60,000-70,000 tonnes cargoes of coal or grains.
Worries over the health of the world economy have signalled more pain and even bankruptcies among dry bulk shipowners, who face a glut of new vessels ordered when times were good.
The overall index rose 3.45 per cent or 58 points to 1,740 points, in a third day of gains and was at its highest since December 24. The index had hit a near seven-month high last month.
Brokers said firmer coal and iron exports from Australia to China had boosted the Capesize market. Coal imports into Japan had also picked up, while freight derivatives contract buying had added further upside momentum on the larger Capesize ships.
Earlier in August, the index, which gauges the cost of shipping commodities, including iron ore, coal and grain, dropped to its lowest in more than three months after falling for 18 consecutive sessions. It has remained erratic and is still over 30 per cent down from the same period last year.
The Baltic’s Capesize index rose 5.99 per cent last Friday, with average daily earnings jumping to $ 23,899 a day and at their highest since December 20 last year. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
Spot iron ore prices were steady on Friday, as miners held offers firm given an anticipated pick-up in Chinese steel demand as well as the continued tightness in supply from India, pushing up global indexes to nearly four-month highs.
Inventories of imported iron ore at major Chinese ports rose 0.5 per cent to a record 95.59 million tonnes by the end of the week.
The Baltic’s Panamax index rose 0.37 per cent. Panamaxes usually transport 60,000-70,000 tonnes cargoes of coal or grains.
Worries over the health of the world economy have signalled more pain and even bankruptcies among dry bulk shipowners, who face a glut of new vessels ordered when times were good.
Source : Exim News Service - LONDON, Sept. 6
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