Rates for hiring the largest carriers used to transport coal, iron ore and other dry goods may extend last week's increase to a record on demand to move cargo across the Pacific.
Gainfully employed: Dry-bulk trade rose to 1.16 billion tonnes in the first half of the year, the largest first-half tonnage ever and up 7.2 per cent from a year earlier
The Baltic Capesize Index, a measure of rates for that class of vessel on different routes around the world, gained 1.2 per cent to 10,715 points last Friday, according to the London-based Baltic Exchange.
It has been setting daily records since last Tuesday. A capesize bulk carrier hauls 175,000 tonnes of goods.
Demand for steam coal, iron ore and steel, led by China, the world's fastest-growing major economy, and port congestion have pushed freight rates higher.
The US harvest for corn and soya bean, which starts in October, is expected to boost demand for bulk carriers in the coming weeks.
'For the time being, it's the Pacific basin that is pushing the market most upwards,' said Oslo-based shipbroker Pareto Dry Cargo AS.
The shipping rate for a tonne of cargo to China from Tubarao in Brazil on a capesize vessel rose 4.7 per cent last week to a record US$66.30 last Friday, according to the Baltic Exchange.
The time-charter daily rate for a capesize bulk carrier rose 1.1 per cent to US$127,033 last Friday, the exchange's data showed.
Time charter refers to the hiring of a vessel for an agreed period of time where the shipowner is paid per day and is responsible for operating the vessel and paying for expenses such as crew and vessel repairs while the charterer bears the cost of fuel, port charges and delays at harbours.
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose 1.5 per cent to 7,702 last Friday, according to the Baltic Exchange.
It is the fourth straight day the index closed at a record. The measure rose 5.8 per cent all of last week.
'The dry-bulk market is indeed in a super cycle with demand coming from China and India,' said Alex Harkess, director for dry-cargo chartering at Clarkson Asia Pte Ltd in Singapore.
'There is a new global economy that's demanding so much resource and transportation by sea.'
Dry-bulk trade rose to 1.16 billion tonnes in the first half of the year, the largest first-half tonnage ever and up 7.2 per cent from a year earlier, according to London-based Galbraith's Ltd.
The Baltic Panamax Index, a measure of rates on seven routes for such vessels, added 2 per cent to 7,620 last Friday, the second day it closed at a record, according to the Baltic Exchange.
A panamax carrier can transport 70,000 tonnes of coal and other dry-bulk goods.
Hiring rates for smaller vessels also gained.
The Baltic Handysize Index, which tracks rates on six routes for that type of ship, increased a second day, rising 0.44 per cent to 2,495 last Friday, according to the Baltic Exchange.
Handysize bulkers can carry 10,000 tonnes to 40,000 tonnes of goods.
The Baltic Supramax Index, made up of five time-charter routes for that type of vessel, advanced to a high for a second day, surpassing the 5,000-point mark.
It increased 2.2 per cent to 5,004 last Friday, the Baltic Exchange reported.
A supramax vessel can transport between 50,000 tonnes and 59,999 tonnes of goods.
Gainfully employed: Dry-bulk trade rose to 1.16 billion tonnes in the first half of the year, the largest first-half tonnage ever and up 7.2 per cent from a year earlier
The Baltic Capesize Index, a measure of rates for that class of vessel on different routes around the world, gained 1.2 per cent to 10,715 points last Friday, according to the London-based Baltic Exchange.
It has been setting daily records since last Tuesday. A capesize bulk carrier hauls 175,000 tonnes of goods.
Demand for steam coal, iron ore and steel, led by China, the world's fastest-growing major economy, and port congestion have pushed freight rates higher.
The US harvest for corn and soya bean, which starts in October, is expected to boost demand for bulk carriers in the coming weeks.
'For the time being, it's the Pacific basin that is pushing the market most upwards,' said Oslo-based shipbroker Pareto Dry Cargo AS.
The shipping rate for a tonne of cargo to China from Tubarao in Brazil on a capesize vessel rose 4.7 per cent last week to a record US$66.30 last Friday, according to the Baltic Exchange.
The time-charter daily rate for a capesize bulk carrier rose 1.1 per cent to US$127,033 last Friday, the exchange's data showed.
Time charter refers to the hiring of a vessel for an agreed period of time where the shipowner is paid per day and is responsible for operating the vessel and paying for expenses such as crew and vessel repairs while the charterer bears the cost of fuel, port charges and delays at harbours.
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose 1.5 per cent to 7,702 last Friday, according to the Baltic Exchange.
It is the fourth straight day the index closed at a record. The measure rose 5.8 per cent all of last week.
'The dry-bulk market is indeed in a super cycle with demand coming from China and India,' said Alex Harkess, director for dry-cargo chartering at Clarkson Asia Pte Ltd in Singapore.
'There is a new global economy that's demanding so much resource and transportation by sea.'
Dry-bulk trade rose to 1.16 billion tonnes in the first half of the year, the largest first-half tonnage ever and up 7.2 per cent from a year earlier, according to London-based Galbraith's Ltd.
The Baltic Panamax Index, a measure of rates on seven routes for such vessels, added 2 per cent to 7,620 last Friday, the second day it closed at a record, according to the Baltic Exchange.
A panamax carrier can transport 70,000 tonnes of coal and other dry-bulk goods.
Hiring rates for smaller vessels also gained.
The Baltic Handysize Index, which tracks rates on six routes for that type of ship, increased a second day, rising 0.44 per cent to 2,495 last Friday, according to the Baltic Exchange.
Handysize bulkers can carry 10,000 tonnes to 40,000 tonnes of goods.
The Baltic Supramax Index, made up of five time-charter routes for that type of vessel, advanced to a high for a second day, surpassing the 5,000-point mark.
It increased 2.2 per cent to 5,004 last Friday, the Baltic Exchange reported.
A supramax vessel can transport between 50,000 tonnes and 59,999 tonnes of goods.