The Baltic Dry Index, a gauge of world trade, gained for a second day on speculation that rising steel prices will spur demand for iron ore.
The index of commodity-shipping costs rose 20 points, or 1.1 per cent, to 1,806 on Friday, according to the Baltic Exchange. Daily rates for capesize ships that typically haul iron ore rose 1.8 per cent to US$22,094. Smaller panamax ships competing for the cargoes and that also haul grains rose 2.1 per cent to US$12,487.
'Steady steel prices have supported rates' for capesizes, Omar Nokta, an analyst at Dahlman Rose & Co in New York, wrote in a note on Friday. 'The panamax market has benefited from a surge in activity levels during the past few days and rates continue gaining.'
Iron ore is the biggest single dry-bulk cargo hauled at sea, accounting for an estimated 26 per cent of the total this quarter, according to Drewry Shipping Consultants in London. Prices of hot-rolled sheet in China, a benchmark steel product in the world's biggest producer nation, rose 3.3 per cent in the week to Thursday.
Capesize forward freight agreements this quarter, used to bet on future shipping rates, dropped 5 per cent to US$20,925 a day in Oslo. Panamax FFAs slid 4.1 per cent to US$11,875 a day. The data are from broker Imarex NOS.
For crude oil, freight rates on major routes were steady on Friday as holidays in a number of countries and weak demand kept activity muted.
The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf to Japan inched higher to W31.27, or US$15,589 a day. It was W31.25 last week. VLCC rates from the Gulf to the United States rose to W24.55 from W23.04 a week earlier.
Exchange figures showed crude oil tanker rates from West Africa to the United States slipped from the previous week.
VLCC from West Africa to the US Gulf dropped to W40.91 from W46.35 a week ago. The rates were higher than those for the route from West Africa to China.
The index of commodity-shipping costs rose 20 points, or 1.1 per cent, to 1,806 on Friday, according to the Baltic Exchange. Daily rates for capesize ships that typically haul iron ore rose 1.8 per cent to US$22,094. Smaller panamax ships competing for the cargoes and that also haul grains rose 2.1 per cent to US$12,487.
'Steady steel prices have supported rates' for capesizes, Omar Nokta, an analyst at Dahlman Rose & Co in New York, wrote in a note on Friday. 'The panamax market has benefited from a surge in activity levels during the past few days and rates continue gaining.'
Iron ore is the biggest single dry-bulk cargo hauled at sea, accounting for an estimated 26 per cent of the total this quarter, according to Drewry Shipping Consultants in London. Prices of hot-rolled sheet in China, a benchmark steel product in the world's biggest producer nation, rose 3.3 per cent in the week to Thursday.
Capesize forward freight agreements this quarter, used to bet on future shipping rates, dropped 5 per cent to US$20,925 a day in Oslo. Panamax FFAs slid 4.1 per cent to US$11,875 a day. The data are from broker Imarex NOS.
For crude oil, freight rates on major routes were steady on Friday as holidays in a number of countries and weak demand kept activity muted.
The world's benchmark Very Large Crude Carrier (VLCC) export route from the Middle East Gulf to Japan inched higher to W31.27, or US$15,589 a day. It was W31.25 last week. VLCC rates from the Gulf to the United States rose to W24.55 from W23.04 a week earlier.
Exchange figures showed crude oil tanker rates from West Africa to the United States slipped from the previous week.
VLCC from West Africa to the US Gulf dropped to W40.91 from W46.35 a week ago. The rates were higher than those for the route from West Africa to China.