Freight rates for smaller cargo ships may extend a record rise, tracking gains in bigger carriers, on booming demand for moving farm products and other dry commodities.
The Baltic Supramax Index, made up of five time-charter routes for that type of vessel, rose 1.61 per cent to 5,169 points on Tuesday, according to the London-based Baltic Exchange. It has been setting records since last Thursday.
'We see very little that is likely to derail these bullish market conditions,' said London-based shipbroker Galbraith's Ltd. Demand in the Pacific last week 'defied the Gods as rates moved heavily upwards, pushing the level for supramaxes to the US$50,000 per day mark', Galbraith's said in its weekly report.
The daily rate for a supramax carrier, which can haul between 50,000 tonnes and 59,999 tonnes of goods, rose US$864, or 1.6 per cent, to US$54,050 on average on Tuesday, the sixth day of gains.
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose to a high of 7,907 points on Tuesday. It is the sixth-straight day the index stood at a record.
Demand from China for iron ore, steam coal and other goods have caused dry-bulk charter rates to more than double in a year. China, the world's largest buyer of iron ore, may boost imports of the steelmaking ingredient by 18 per cent to 386 million tonnes this year, the China Metallurgical Mining Enterprise Association said on Wednesday.
The US harvest for corn and soya bean, which starts in October, is expected to boost demand for bulk carriers and push rates higher.
'The current extreme rate environment is anticipated to see support in coming months from continued robust dry bulk demand, which in turn could lead to even more severe port congestion difficulties,' DNB Nor Markets analysts Glenn Lodden and Henrik With said on Wednesday.
The average waiting time for ships loading coal at Australia's Newcastle, the world's biggest coal-export harbour, was at 20.28 days as of Monday compared with 0.10 days for general cargo, according to the Newcastle Port Corp website.
The Baltic Supramax Index, made up of five time-charter routes for that type of vessel, rose 1.61 per cent to 5,169 points on Tuesday, according to the London-based Baltic Exchange. It has been setting records since last Thursday.
'We see very little that is likely to derail these bullish market conditions,' said London-based shipbroker Galbraith's Ltd. Demand in the Pacific last week 'defied the Gods as rates moved heavily upwards, pushing the level for supramaxes to the US$50,000 per day mark', Galbraith's said in its weekly report.
The daily rate for a supramax carrier, which can haul between 50,000 tonnes and 59,999 tonnes of goods, rose US$864, or 1.6 per cent, to US$54,050 on average on Tuesday, the sixth day of gains.
The Baltic Dry Index, an overall measure of commodity-shipping costs on different routes and ship sizes, rose to a high of 7,907 points on Tuesday. It is the sixth-straight day the index stood at a record.
Demand from China for iron ore, steam coal and other goods have caused dry-bulk charter rates to more than double in a year. China, the world's largest buyer of iron ore, may boost imports of the steelmaking ingredient by 18 per cent to 386 million tonnes this year, the China Metallurgical Mining Enterprise Association said on Wednesday.
The US harvest for corn and soya bean, which starts in October, is expected to boost demand for bulk carriers and push rates higher.
'The current extreme rate environment is anticipated to see support in coming months from continued robust dry bulk demand, which in turn could lead to even more severe port congestion difficulties,' DNB Nor Markets analysts Glenn Lodden and Henrik With said on Wednesday.
The average waiting time for ships loading coal at Australia's Newcastle, the world's biggest coal-export harbour, was at 20.28 days as of Monday compared with 0.10 days for general cargo, according to the Newcastle Port Corp website.