Strong Capesize rates extend Baltic index gains

The Baltic Exchange's main sea freight index rose for the third straight session on Thursday, driven by higher rates for Capesize vessels.

The main index rose 138 points, or 6.5 per cent, to 2,258 points, its highest level since March 2024.

The Capesize index climbed to a one-year peak, gaining 451 points, or 13.5 per cent, to 3,790.

Average daily earnings for Capesize vessels increased $3,741 to $31,429.

"We forecast that bulker deliveries will gradually increase this year and in 2026, reaching 41.2 million deadweight tonnes and a six-year high," Filipe Gouveia, shipping analysis manager at BIMCO, said in a note dated Wednesday.

"Bulker newbuilding contracting was strong in 2023 and 2024, and several of the ships ordered during this period are expected to be delivered during this and next year."

Dalian iron ore futures prices closed lower, pressured by increasing supply from top miners Vale and Fortescue, and higher steel inventories at Chinese mills.

The Panamax index slipped 23 points, or 1.2 per cent, to 1,882. Average daily earnings for Panamax vessels decreased by $202 to $16,940.

Among smaller vessels, the supramax index shed 15 points, or 1.1 per cent, to 1,298.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore)