The Baltic Exchange’s dry bulk sea freight index has reached a significant milestone, climbing to its highest level in over eight months. This increase results from rising rates in both large and small vessel categories. The main index, which includes rates for capesize, panamax, and supramax shipping vessels, rose by 166 points, marking a 9.6% gain to reach 1,904.
This is its highest level since October 7. In particular, the capesize index experienced a remarkable surge, jumping by 459 points or 14.8% to 3,555, the highest it has been since September 30. The average daily earnings for capesize vessels, which typically transport large cargoes of around 150,000 tons, such as iron ore and coal, increased by $3,802, bringing their earnings to $29,481.
While iron ore futures prices declined as investors awaited further details on trade negotiations between the U.S. and China, President Donald Trump expressed optimism regarding a trade deal that could ease tensions in the ongoing trade war. He stated he was pleased with the developments so far. Meanwhile, China’s foreign ministry reiterated their commitment to honoring agreements but provided no additional details.
The panamax index also saw a rise, gaining 38 points or 2.8%, and reaching 1,375, its highest level in six weeks. Average daily earnings for panamax vessels, which typically carry between 60,000 and 70,000 tons of coal or grain, rose by $340 to $12,376. Finally, the supramax index added 11 points, climbing to 933, nearing a weekly high.
Overall, these developments indicate a positive trend in the shipping industry.