The Baltic Exchange main sea freight index, which monitors the rates of ships carrying dry bulk goods, experienced a boost for the third consecutive week. This increase was driven by higher rates in both the panamax and supramax segments.
The overall index, which includes rates for capesizes, panamaxes, and supramaxes, saw a rise of 6 points or 0.3% to reach 1,948 last Friday. This marked a significant 3.6% weekly increase.
On the other hand, the Capesize Index witnessed a decline of 28 points or 0.9% to 2,957. Throughout the week, this index fell by 1.3%. The average daily earnings of capesize ships, known for transporting heavy cargoes like coal and iron ore, dropped by $227 to $24,525.
Despite higher-than-expected hot metal production, iron ore futures prices went up. However, concerns regarding demand and substantial portside inventories in China led to a decrease in prices for the third consecutive week.
In contrast, the panamax Index surged by 30 points or 1.6% to 1,950. This week, it experienced a notable increase of 11.4%. The average daily earnings of panamax vessels, which typically carry coal or grain cargoes weighing between 60,000 to 70,000 tons, rose from $266 to $17,546.
Moreover, the supramax index for smaller vessels saw a rise of 22 points to 1,335. This marked the end of a four-week losing streak for the index, showing a gain of 6.5% for the week.
Overall, the Baltic Index’s weekly gains were driven by the increased rates for smaller ships, particularly in the panamax and supramax segments. This positive trend reflects a strengthening market for sea freight transportation, despite some fluctuations in specific sectors like iron ore and coal. As global trade continues to recover, the shipping industry is poised for further growth and stability in the coming weeks.