The Baltic Exchange’s dry bulk sea freight index rose on Friday and posted a weekly gain, lifted by broad-based strength across all vessel classes.
The main index rose 23 points, or 1.2 per cent, to 2,069 points. The index logged a 6.9 per cent weekly gain.
The US and China have imposed new port fees on each other’s vessels, disrupting trade routes and increasing freight costs, making the high seas a key front in the trade war between the world’s two largest economies.
China’s, “new measures, mirroring similar US actions, are set to gradually increase over the coming years, heightening uncertainty across global shipping markets,” Nikos Tagoulis, senior analyst at Intermodal, said in a note earlier this week.
The Capesize index rose 63 points, or 2.1 per cent, to 3,121 points, and climbed 11.5 per cent for the week. Average daily earnings for Capesize vessels increased by $524 to $25,882.
However, iron ore futures are headed for a weekly loss, with concerns surrounding the demand outlook due to US-China trade tensions coinciding with prospects of rising ore supply for the remainder of the year.
The Panamax index rose one point to 1,827 points and saw a 3.6 per cent weekly rise. The index was also at its highest since September 26. Average daily earnings for Panamax vessels rose by $13 to $16,446.
Among smaller vessels, the supramax index rose two points to 1,424 points, its highest since October 7, and posted a 1.6 per cent weekly gain.
(Reporting by Anjana Anil in Bengaluru; Editing by Vijay Kishore)