BDI dry bulk sea freight index up on gains for panamaxes

BDI dry bulk sea freight index up on gains for panamaxes

Nov 25 Reuters - The Baltic Exchange's dry bulk sea freight index went up on Thursday, buoyed by gains for panamax and supramax vessels that countered a dip in rates for the larger capesize segment.

The overall index, based on rates for capesize, panamax and supramax vessels, gained 24 points, or 1%, to 2,678 points.

The capesize index dropped 46 points, or 1.2%, to 3,776.

Average daily earnings for capesizes, which transport 150,000 tonne cargoes, such as iron ore and coal, fell $390 to $24,355.

Despite a decrease in Brazil-China iron ore trade volumes, recent iron ore price developments and news around the coal market could suggest an end-year rally, shipbroker Fearnleys said in a weekly note on Wednesday.

Iron ore pushed a rally into a fifth straight session, supported by improved sentiment towards China's property sector.

If the BDI main dry bulk index falls, it should not be seen as a sign that global logistics are improving or supply chain bottlenecks are easing, and it will reflect weakness in China's commodity demand, Capital Economics said in a note.

The main index saw steady declines for most of October and into early November, and hit a five-month low on November 17.

The panamax index rose 111 points, or 4.7%, to 2,489.

The average daily earnings for panamaxes, which carry 60,000 tonne of coal or grain cargoes, increased by $999 to $22,404.

The supramax index added 29 points to its highest level in two weeks at 2,284.

The number of supramax vessels heading to major loading countries in Asia is close to all-time highs, pointing to a bullish outlook for the segment, Fearnleys said.