The Baltic Exchange’s main sea freight index rose to its highest level in a week on Monday, supported by gains across all vessel segments amid strengthening demand and firmer commodity markets.
The overall Baltic Dry Index (BDI), which tracks rates for ships carrying dry bulk commodities such as coal, iron ore, and grains, climbed 9 points, or 0.6%, to 1,652. This marks the index’s highest level since March 17.
Leading the upward momentum was the capesize segment, with its index rising 14 points, or 0.5%, to 2,690. Capesize vessels, which typically haul around 150,000 tons of cargo including iron ore and coal, saw average daily earnings inch up by $121 to $22,311.
The uptick in capesize rates coincided with a rally in iron ore futures, as stronger demand in China—the world’s top consumer of the steelmaking material—helped offset concerns about potential steel production curbs.
Meanwhile, the panamax index also gained 14 points, nearly 1%, to reach 1,389. Panamax vessels, which usually carry between 60,000 and 70,000 tons of coal or grain, saw daily earnings rise by $125 to $12,504.
Among smaller vessels, the supramax index ticked up to 1,013, marking its highest level in more than four months, further contributing to the broad-based strength in the dry bulk shipping market.
In a separate development with potential geopolitical implications for shipping routes, U.S. and Russian officials met in Saudi Arabia for talks aimed at achieving a broad ceasefire in Ukraine. Washington is reportedly pursuing a maritime ceasefire agreement in the Black Sea as a first step toward a wider resolution.
(Reuters)
