Panamax vessel rates prop up Baltic index
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose on Monday on higher rates for smaller panamax vessels, Reuters reports.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, rose 0.91 percent to 883 points.
The panamax index rose 8.19 percent to 647 points, with average daily earnings up $386 at $5,155.
Panamaxes typically transport 60,000-70,000 tonne cargoes of coal or grain.
The Baltic's capesize index fell 0.57 percent to 1,921 points.
Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were down $65 at $11,172.
Shanghai rebar steel futures rose nearly 2 percent on Monday to the highest in almost two months as Chinese traders returned from a week-long break armed with hopes demand in the world's top consumer will pick up as the economy stabilises.
Steel's rise suggests prices of raw material iron ore are likely to rebound this week, with Chinese mills also expected to return to the spot market to replenish stocks.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
"Fleet growth will most likely continue at a higher rate than any likely increase in tonnage demand for the rest of this year and into next year and thereby limit any upside potential in earnings," RS Platou Markets said in its quarterly report on Monday.
"However, fleet growth is slowing sharply during 2013 and should set a stage for improvements in the second half with a sustained recovery seen from 2014," it added.
Average daily earnings for handysize ships were down $4 at $6,531, while those of supramax ships were down $44 at $8,271.
