The Baltic Exchange's dry bulk freight index rose to its highest level in more than a week on Thursday with Capesize vessel rates leading gains after iron ore prices rose on concerns over tighter supply in China.
The main Baltic index added 88 points, or 3.4 per cent, to reach 2,650, its highest since June 24.
The Capesize index was up 229 points, or 6.2 per cent, at 3,921. Average daily earnings for Capesize vessels increased $2,079 to $32,060.
Iron ore futures climbed after China restricted deliveries of some Fortescue products to certain domestic steel mills, tightening supply in the world's largest market for the steelmaking ingredient.
The Panamax index rose 18 points, or 0.8 per cent, to 2,195. Average daily earnings for Panamax vessels gained $167 to $19,758.
Among smaller vessels, the supramax index was up two points, or 0.1 per cent, at 1,675.
(Reporting by Sumit Saha in Bengaluru; Editing by Shailesh Kuber)