On Monday, the Baltic Exchange’s main dry bulk sea freight index jumped to a 12-year high, as rates across vessel segments climbed on robust demand and global shipping constraints.
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The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, jumped up 29 points at 4,304, its peak value since 24th November, 2009.
Analysts have attributed the rise in the dry bulk market to global shipping constraints and an overall rebound in commodities demand.
Emily Stausboll, a shipping analyst at BIMCO, reported: “Dry bulk ships are spending a lot more time waiting outside of ports, both because there are so many ships and also due to the new (pandemic-led) quarantine measures around the world.” Furthermore, she added that various economic stimulus measures are also helping dry bulk demand.
Stausboll further noted that the factors that have been operating the market “won’t disappear overnight,” and the dry bulk market actually has performed best at the end of the year before easing off into the start of next year.
The capesize index increased 67 points, or 1%, resulting in 6,487, its highest value since December 2009.
Average daily earnings for capesizes, which ferry 150,000-tonne cargoes such as iron ore and coal, increased $555, resulting in $53,795.
Among smaller vessels, the supramax index rose for a sixth straight session, adding 12 points to 3,319, its peak in over two weeks.
The panamax index soared for an eighth straight session, adding 12 points, or 0.3%, to 3,916, its highest in over two months.
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Average daily earnings for panamaxes, which transport 60,000-70,000 tonne coal or grain cargoes, escalated $102, resulting in $35,240.