The Baltic Exchange's dry bulk sea freight index hit a two-week high on Monday on expectations of higher shipping costs after China pledged to charge additional ports fees for US ships.
The main index, which factors in rates for Capesize, Panamax and supramax shipping vessels, rose 208 points, or 10.7 per cent, to 2,144 points, its highest since September 29.
China will slap port fees on US-owned, -operated, -built, or -flagged vessels on Tuesday as a countermeasure to US port fees on China-linked ships starting the same day, China's transport ministry said on Friday.
"The latest geopolitical developments are creating the potential for further disruption. Container freight rates...are seeing some near-term upside as operators raise rates in anticipation of a disruption," analysts at Jefferies said in a note.
The Capesize index rose 593 points, or 21.2 per cent to 3,392 points, touching its highest since September 29. Average daily earnings for Capesize vessels increased by $4,916 to $28,132.
Iron ore futures gained as robust steel exports in top consumer China, along with lower ore shipments, outweighed concerns over renewed Sino-US trade tensions.
The Panamax index rose 42 points to 1,806 points.
Average daily earnings for Panamax vessels rose by $384 to $16,257.
Among smaller vessels, the supramax index fell 2 points to 1,400 points.
(Reporting by John Biju in Bengaluru; Editing by Vijay Kishore)