Wed Sep 19, 2012
Sept 19 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, rose for a third straight session on Wednesday as a spurt in Atlantic and Pacific activity boosted rates for bigger capesize vessels.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, rose 25 points or 3.59 percent to 722 points.
"The market started to finally note some improvement, as inquiries started to pour into the market clearing out much of the excess tonnage and boosting sentiment," George Lazaridis of Intermodal Shipbrokers Co said.
The Baltic's capesize index climbed 7.16 percent to 1,421 points. Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, rose $890 to $5,896.
"With charterers seeming more active this week in both basins, capesizes were able to see a steady flow of fresh inquiries while at the same time position lists were ideal in order to take advantage of this increase demand and create some upward pressure in rates," Lazaridis said.
Rates of capesize vessels gained mostly due to iron ore restocking in top consumer China backed by higher steel prices.
Shipments of iron ore, raw material for making steel, account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Analysts expect the positive momentum in capesize activity to continue for the next couple of days.
The Baltic's panamax index fell 1.27 percent to 468 points, with average daily earnings for panamaxes, which typically transport 60,000-70,000 tonne cargoes of coal or grains, down $40 at $3,723.
Oversupply of tonnage coupled with a by a lack of activity in the panamax segment kept rates under pressure.
"Both the Atlantic and Pacific basins fundamentals are not pointing to any improvement in demand over the next couple of days, while things may even worsen further if tonnage lists continue to swell," Lazaridis said.
Rates for supramax vessels were up $25 at $8,840 and those for handysizes remained flat at $6,985.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 58 percent this year.
(Reporting by Soma Das in Bangalore, editing by William Hardy)
Sept 19 (Reuters) - The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry commodities, rose for a third straight session on Wednesday as a spurt in Atlantic and Pacific activity boosted rates for bigger capesize vessels.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, rose 25 points or 3.59 percent to 722 points.
"The market started to finally note some improvement, as inquiries started to pour into the market clearing out much of the excess tonnage and boosting sentiment," George Lazaridis of Intermodal Shipbrokers Co said.
The Baltic's capesize index climbed 7.16 percent to 1,421 points. Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, rose $890 to $5,896.
"With charterers seeming more active this week in both basins, capesizes were able to see a steady flow of fresh inquiries while at the same time position lists were ideal in order to take advantage of this increase demand and create some upward pressure in rates," Lazaridis said.
Rates of capesize vessels gained mostly due to iron ore restocking in top consumer China backed by higher steel prices.
Shipments of iron ore, raw material for making steel, account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Analysts expect the positive momentum in capesize activity to continue for the next couple of days.
The Baltic's panamax index fell 1.27 percent to 468 points, with average daily earnings for panamaxes, which typically transport 60,000-70,000 tonne cargoes of coal or grains, down $40 at $3,723.
Oversupply of tonnage coupled with a by a lack of activity in the panamax segment kept rates under pressure.
"Both the Atlantic and Pacific basins fundamentals are not pointing to any improvement in demand over the next couple of days, while things may even worsen further if tonnage lists continue to swell," Lazaridis said.
Rates for supramax vessels were up $25 at $8,840 and those for handysizes remained flat at $6,985.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen about 58 percent this year.
(Reporting by Soma Das in Bangalore, editing by William Hardy)
No comments:
Post a Comment