The Baltic Sea Freight Index extended its gains above 10,000 on strong demand and congestion at seaports. This is the highest level in the past 13 years.
The overall ocean freight index, which measures charter rates for large ships – capesize, panamax, supramax and handysize ships, increased by 238 points, or 4.4%, to 5,647 on October 6, the highest level. since September 2008.
The increase was mainly due to a spike in capesizer charter rates, adding 723 points, or 7.4%, to 10,475, the highest level in more than 13 years.
Baltic Sea Freight Index (Source: Refinitiv)
“Congestion in China’s seaports, general changes in trade patterns this year, strong Brazilian iron ore exports, and high demand for thermal coal are driving freight rates up.” , said Peter Sand, BIMCO’s head of shipping analysis.
Average daily freight for capesizes, a 150,000-ton vessel carrying heavy cargoes such as iron ore and coal, rose $5,993 to $86,870.
“The main index and the overall capesize ship market will tend to increase from now to the end of the year, mainly due to strong coal import demand from India and China,” said Mr. Sand, and added that seasonal factors could help cool the market a bit in the first quarter of next year.
Meanwhile, the panamax freight index fell 15 points, or 0.4%, to 3,903, its lowest level in nearly three weeks.
Average daily freight for panamaxes, transporting between 60,000 tons and 70,000 tons of coal or grain, fell $129 to $35,130.
The supramax freight index rose 6 points to 3,388.
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