Wed Apr 25, 2012
April 25 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities rose for an 11th straight session on Wednesday as rates for smaller vessels firmed on active chartering in both Atlantic and Pacific basins.
The overall index, which reflects the daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, rose 21 points or 1.88 percent to 1,137 points.
"Today the amount of tonnage is very tight in the market and owners are pushing rates up. It has been a long time since we saw an owners' market such as this," ship broker BRS said in a report.
The Baltic's panamax index rose 3.93 percent, with average daily earnings at $13,520, a fresh 2012 high.
"The Panamax market's activity has picked up and a few remaining cargoes are still working. With the steady inquiry, upward pressure is expected in the near term," McQuilling Partners Inc. said in its daily market commentary.
There are increased coal shipments in both hemispheres and the grain season is still fairly active out of east coast of South America, broker firm Fearnleys in its weekly report.
Average daily earnings for handysize also reached a fresh high for the year with rates spiking to $8,698. Rates for supramax ships were up at $11,369.
"With more cargoes entering the market the numbers of idle (handysize) ships was quickly reduced and rates peaked rapidly," Fearnleys said.
The Pacific market remained steady with nickel ore and coal enquiries, it added.
The Baltic's capesize index fell by 0.46 percent to 1,514 points.
"Capes are presently lacking the momentum of their smaller size siblings as low steel demand in China has led...weak iron ore and coking coal shipments to China, the main drivers of the capesize freight market," Greek broker Intermodal said.
Growing ship supply has been outpacing commodity demand for quite sometime now and is widely expected to cap dry bulk freight rate gains in the coming months.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 35 percent this year.
(Reporting by NR Sethuraman in Bangalore; editing by Keiron Henderson)
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