Baltic Dry Index records best month in two years


The Baltic Exchange’s main ocean freight index, which tracks rates for vessels carrying dry bulk cargo, rose on Friday and recorded its best month in 2 years, propelled by a corresponding increase in capesize and panamax demand.

The headline index, which takes into account capesize, panamax and supramax carrier ship rates, ended its long four-session streak to gain 3 points to 1,760. It jumped around 82.4% for the month, its best since June 2020.

However, the main index registered a second consecutive quarterly decline, losing 21.4%.

The Capesize index also ended a four-day losing streak and added 1 point to 1,955. For the month, it climbed 547%, posting its best performance since June 2020.

Average daily earnings for capesizes, which typically carry 150,000-tonne cargo such as coal and steelmaking iron ore used in construction, rose by $12 to $16,214.

Capesizes still lost around 20% for the quarter, in part due to lower demand from China’s major steel producer amid COVID-19 lockdowns during the period.

Dalian and Singapore iron ore posted their second quarterly losses, despite some gains on Friday, as concerns over a strict zero-COVID policy and jitters in China’s property sector continued to dominate markets.

The panamax index rose 19 points, or around 1%, to 2,082. It rose 71% in its best month since September 2013.

However, it also saw its second straight quarterly decline of around 16.2%.

Average daily earnings for panamaxes, which typically carry coal or grain cargoes of around 60,000 to 70,000 tons, rose by $175 to $18,742.

The supramax index fell 11 points to 1,663.

(Reuters – Reporting by Harshit Verma; Editing by Uttaresh.V)


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