Thu May 3, 2012
May 3 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose on Thursday after a three-day losing streak as rates for larger capesizes rose.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, gained eight points or 0.7 percent to 1,157 points.
The Baltic's capesize index rose 2.14 percent to 1,527 points.
There was higher activity in the capesize segment after the Chinese holidays, RS Platou analyst Frode Morkedal said.
Rates for capesizes, which typically transport 150,000 tonne cargoes such as iron ore and coal, were up $605 to $7,069.
"Chinese manufacturing rebounding from the recent lows bodes well for dry bulk demand as rebounding activity supports the strong steel production numbers off late," RS Platou Market analysts said in a report.
Rates for supramax and handysize vessels rose to $11,582 and $9,066, respectively.
The Baltic's panamax index fell 3.43 percent, with average daily earnings down $458 to $13,051.
Panamax rates on key Asian freight routes are expected to fall next week, with an increasing amount of tonnage weighing on an already over supplied market, ship brokers said on Thursday.
Seasonal grain exports from Latin America have boosted demand for the panamax vessels, which usually transport 60,000-70,000 tonne cargoes of coal or grains, but those exports are expected to wind down.
"Even as we expect the panamax segment to see rates ease off, summer coal demand and modest grain activity should lend support," RS Platou analysts said.
Demand for coal in China and India would tighten the Atlantic tonnage market, broker firm Fearnleys said in its weekly report.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 33 percent this year.
(Reporting by NR Sethuraman in Bangalore, editing by Jane Baird)
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