The Baltic Exchange's main sea freight index .BADI, which tracks rates to ship dry commodities, was at its highest in over two months on Monday, buoyed by Chinese iron ore enquiry and grains demand in Europe. The index, which gauges the cost of shipping commodities including iron ore, cement, grain, coal and fertiliser, rose 3.08 percent, or 85 points, to 2,841 points in a 13th session of gains and was at its highest since June 17. It has risen 44 percent since it began moving higher on Aug. 5.
"Period market activity is quite significant, and quite a few ships are being taken for about half a year," said Peter Norfolk, research director at broker FIS.
"We are in that situation where charterers are quite keen to cover their freight requirements for the next few months because they are worried about any further move upwards later in the year."
Brokers said chartering activity had been driven by Chinese iron ore imports from Australia and Brazil on capesizes after Karnataka, India's second-largest ore producing state, banned exports from 10 of its ports last month.
They added that capesize port congestion especially in Brazil and Australia was also creeping up, supporting rates as it tightened vessel availability. <GP/NEWS>
The Baltic's capesize index .BACI rose 5.56 percent, with average capesize earnings rising to $37,321 a day and was at its highest since June 14. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
"Activity levels slipped somewhat from the rapid pace of the previous week. However, the stable steel market in China kept demand firm and rates moving upward," Dahlman Rose & Co said.
"Rates for other vessel classes have been somewhat flatter, with capesizes seeing the majority of the benefit from firmer steel prices compared to earlier in the summer."
The Baltic's main index has been erratic this year, similar to 2009, because of swings in Chinese demand for iron ore, the primary ingredient of steel.
The Baltic's panamax index .BPNI rose 1.07 percent with average daily earnings rising to $25,097. The Baltic's supramax index .BASI rose 1.25 percent.
Brokers said grain cargo activity in the Atlantic market, helped by Russia's grain export ban, was boosting panamax rates.
"More panamax vessels have also recently been chartered to haul iron ore due to the recent sharp increase in capesize rates," Commodore Research said in a report.
More broadly, industry concerns about the pace of global economic recovery may hit shipping, given that about 90 percent of the world's traded goods by volume are transported by sea.
The euro zone's economic recovery moderated only slightly in August, and companies are more optimistic about the coming months despite a divergence in growth rates between countries. Analysts said freight rates also were expected to be dampened this year due to the pace at which new ships are set to enter the market in 2010 and 2011, despite indications of some vessel cancellations and delays.
"Period market activity is quite significant, and quite a few ships are being taken for about half a year," said Peter Norfolk, research director at broker FIS.
"We are in that situation where charterers are quite keen to cover their freight requirements for the next few months because they are worried about any further move upwards later in the year."
Brokers said chartering activity had been driven by Chinese iron ore imports from Australia and Brazil on capesizes after Karnataka, India's second-largest ore producing state, banned exports from 10 of its ports last month.
They added that capesize port congestion especially in Brazil and Australia was also creeping up, supporting rates as it tightened vessel availability. <GP/NEWS>
The Baltic's capesize index .BACI rose 5.56 percent, with average capesize earnings rising to $37,321 a day and was at its highest since June 14. Capesizes typically haul 150,000-tonne cargoes such as iron ore and coal.
"Activity levels slipped somewhat from the rapid pace of the previous week. However, the stable steel market in China kept demand firm and rates moving upward," Dahlman Rose & Co said.
"Rates for other vessel classes have been somewhat flatter, with capesizes seeing the majority of the benefit from firmer steel prices compared to earlier in the summer."
The Baltic's main index has been erratic this year, similar to 2009, because of swings in Chinese demand for iron ore, the primary ingredient of steel.
The Baltic's panamax index .BPNI rose 1.07 percent with average daily earnings rising to $25,097. The Baltic's supramax index .BASI rose 1.25 percent.
Brokers said grain cargo activity in the Atlantic market, helped by Russia's grain export ban, was boosting panamax rates.
"More panamax vessels have also recently been chartered to haul iron ore due to the recent sharp increase in capesize rates," Commodore Research said in a report.
More broadly, industry concerns about the pace of global economic recovery may hit shipping, given that about 90 percent of the world's traded goods by volume are transported by sea.
The euro zone's economic recovery moderated only slightly in August, and companies are more optimistic about the coming months despite a divergence in growth rates between countries. Analysts said freight rates also were expected to be dampened this year due to the pace at which new ships are set to enter the market in 2010 and 2011, despite indications of some vessel cancellations and delays.