The Baltic Exchange’s main dry bulk sea freight index rose for a third straight session on Tuesday, hitting a near 12-year high, driven by higher rates across vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, rose 106 points, or 2.5%, to 4,410, its highest since Nov. 2009.
Analysts have attributed the recent rally in the dry bulk market to global shipping constraints, including port congestion in China and an overall rebound in commodities demand.
“The market momentum and seasonality historical trends heavily hint towards a long position for the remaining part of the year,” Allied Shipbroking said in a weekly note.
The capesize index increased 298 points, or 4.6%, to 6,785, its highest in 12 years.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, increased $2474 to $56,269.
The panamax index rose 14 points, or 0.4%, to 3,930, its highest over five weeks.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased $133 to $35,373.
Among smaller vessels, the supramax index added 8 points to 3,327, its highest in over two weeks.
Source: Reuters (Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Amy Caren Daniel)