Baltic sea index flat, capesize rates rise
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, remained flat on Friday as firmer rates for larger capesizes offset weakness in smaller panamaxes, Reuters reports.
The overall index, which reflects the daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, ended the week at 1,157 points.
The Baltic's capesize index rose 3.21 percent to 1,576 points.
Rates for capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, were up $779 at $7,848, their highest since mid January.
"We expect capesize rates to increase further in coming weeks on rising iron ore imports to China and supported by long haul coal fixtures," RS Platou Markets analysts said in a report.
Iron ore chartering from Brazil and Australia are pushing up rates for capesize vessels, Peter Norfolk, head of research at freight broker FIS said.
Iron ore demand in China was quiet until last week, but imports have been steady in the week to May 4, recent data from industry consultancy Mysteel showed.
The Baltic's panamax index fell 6.61 percent, with average daily earnings down $857 to $12,194.
Seasonal grain exports from Latin America have boosted demand for the panamax vessels, but exports are expected to wind down weighing on rates for the vessels, which usually transport 60,000-70,000 tonne cargoes of coal or grains.
"The grain chartering activity out of South America has calmed down a little bit due to a dip in activity," Norfolk said.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 33 percent this year. The index registered a gain of only one point for the week.