Bulk carrier hiring rates have risen to a record on expectations that shipments of iron ore and steam coal are set to rise.
Cruising nicely: Iron-ore stock-building due to increased global steel production and rising contract prices from April1, 2008 should drive ton-mile demand, say DNB analysts
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose 1.43 per cent to a high of 7,381 yesterday, according to the Baltic Exchange. The last record, 7,319, was on Aug 16.
Chinese demand for commodities have pushed freight rates higher. Congestion at Australia's Newcastle port, the world's biggest coal-export harbour, has further tightened availability of ships.
Vessels were held up an average of 19.69 days at Newcastle compared with 19.3 days the previous week, Newcastle Port Corp, said on its website.
'Dry bulk shipping rates should rise this week,' DNB Nor Markets analysts Glenn Lodden and Henrik With said in a weekly report. 'Steam coal's attractiveness as an alternative energy source relative to oil should boost demand when the heating season commences,' the analysts said.
Iron-ore stock-building due to increased global steel production and rising contract prices from April 1, 2008 'should drive ton-mile demand', the analysts added.
The rate to hire a capesize carrier, the largest of bulk carriers that can haul 175,000 tonnes of goods, surged 2.8 per cent to an all-time high of US$121,804 on average yesterday, data from the Baltic Exchange showed.
The Baltic Capesize Index, a measure of rates for that class of vessel on different routes around the world, jumped 2.7 per cent to a record 10,267 yesterday, according to the Baltic Exchange. It last surpassed the 10,000 mark on Aug 16.
Hiring rates for smaller bulk carriers fell a fourth day. The Baltic Handysize Index, which tracks rates on six routes for that type of ship, slipped 0.24 per cent to 2,483 yesterday, according to the Baltic Exchange. Handysize bulkers can carry 10,000 to 40,000 tonnes of goods.
Cruising nicely: Iron-ore stock-building due to increased global steel production and rising contract prices from April1, 2008 should drive ton-mile demand, say DNB analysts
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose 1.43 per cent to a high of 7,381 yesterday, according to the Baltic Exchange. The last record, 7,319, was on Aug 16.
Chinese demand for commodities have pushed freight rates higher. Congestion at Australia's Newcastle port, the world's biggest coal-export harbour, has further tightened availability of ships.
Vessels were held up an average of 19.69 days at Newcastle compared with 19.3 days the previous week, Newcastle Port Corp, said on its website.
'Dry bulk shipping rates should rise this week,' DNB Nor Markets analysts Glenn Lodden and Henrik With said in a weekly report. 'Steam coal's attractiveness as an alternative energy source relative to oil should boost demand when the heating season commences,' the analysts said.
Iron-ore stock-building due to increased global steel production and rising contract prices from April 1, 2008 'should drive ton-mile demand', the analysts added.
The rate to hire a capesize carrier, the largest of bulk carriers that can haul 175,000 tonnes of goods, surged 2.8 per cent to an all-time high of US$121,804 on average yesterday, data from the Baltic Exchange showed.
The Baltic Capesize Index, a measure of rates for that class of vessel on different routes around the world, jumped 2.7 per cent to a record 10,267 yesterday, according to the Baltic Exchange. It last surpassed the 10,000 mark on Aug 16.
Hiring rates for smaller bulk carriers fell a fourth day. The Baltic Handysize Index, which tracks rates on six routes for that type of ship, slipped 0.24 per cent to 2,483 yesterday, according to the Baltic Exchange. Handysize bulkers can carry 10,000 to 40,000 tonnes of goods.
