The Baltic Exchange’s main dry bulk sea freight index went up more than 6% to its peak in about a week on Friday, backed by a jump in the capesize and panamax segments. The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 221 points, or 6.1%, resulting in 3,864.
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The main index went down about 2% this week. Athens-based EastGate Shipbrokers noted, “This upcycle in asset values confirms that supply/demand fundamentals look very promising for future prospects of dry bulk earnings.”
Sentiment in the sector remains buoyant as the global economy and seaborne trade are both rebounding from major pandemic challenges, EastGate Shipbrokers stated further.
The capesize index rose for a second straight session to 605 points, adding 12.2%, to 5,567, but the index went down 1% for the week.
Average daily earnings for capesizes, which carry 150,000-tonne cargoes such as iron ore and coal, rose $5,021 to $46,172.
Iron ore futures in top steel producer China marked its second consecutive weekly loss, with the benchmark Dalian price hovering near its lowest in seven months on fears of more curbs in the steel production.
The panamax index also rose for a second straight session, gaining 85 points, or 2.4%, to 3,595, its highest since 3rd September.
The panamax segment registered a weekly decline of 0.3%. The average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased $767 to $32,356.
Among smaller vessels, the supramax index extended its fall to a straight eight sessions and dipped 9 points to a more than three-week low of 3,170. The index fell 5.3% this week.