The Baltic Exchange's dry bulk sea freight index extended gains on Thursday, supported by a rise in Capesize vessel rates.
The main index rose 11 points, or 0.6 per cent, to 1,961 points. The Capesize index gained 102 points, or 3.6 per cent, to 2,945 points, its highest in a week. Average daily earnings for Capesize vessel increased by $848 to $24,428.
Iron ore futures pulled back on Thursday, as a bout of profit-taking took toll after the meeting between leaders of the world’s top two economies.
President Donald Trump announced Thursday that he and Chinese President Xi Jinping had reached an agreement to reduce tariffs in return for China’s efforts to curb fentanyl trafficking, resume US soybean imports, and maintain rare earth exports.
The presidents also agreed to pause tit-for-tat port fees on shipping, designed to thwart dominance in shipbuilding, ocean freight and logistics.
Meanwhile, the Panamax index lost for its fourth straight session, falling 36 points, or 1.9 per cent, to 1,849 points, hitting its lowest level since October 20. Average daily earnings for Panamax vessels fell by $319 to $16,643.
"Overall, sentiment (in Panamax) turned cautious, with the market looking due for a correction after recent highs," shipbroker Fearnleys wrote in a weekly note on Wednesday.
Among smaller vessels, the supramax index lost six points to 1,336 points.
(Reporting by Pablo Sinha in Bengaluru)
