The Baltic Exchange's main sea freight index, which tracks rates to ship
dry commodities, rose for a sixth session on Friday as modest cargo
demand bolstered sentiment.
The index rose 2.2 percent or 29 points to 1,346 points in a sixth straight rise.
Before the beginning of the move higher last week, the index which tracks the cost of shipping key commodities such as iron ore, cement, grain, coal and fertiliser, had fallen for four previous sessions, and in February it reached its lowest in two years."The capesize market remains in the doldrums, but there is a slightly more positive sentiment to the market lately," said Arctic Securities analyst Erik Nikolai Stavseth."The Panamax market is showing resilience as a new round of South American grain cargoes are propping up the market. We see both panamaxes and capesizes moving higher in the near term."
Recent floods and cyclones in Australia have hit coal production and many producers have declared force majeure at their operations, which has hurt capesize activity.
The Baltic's capesize index .BACI rose 2.66 percent, with average daily earnings inching higher to $5,704 in a fourth day of light gains. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"The (capesize) market was slightly more positive this week in both basins. A few more cargoes appeared for transatlantic trade this week. Also in the Far East there was some more demand for vessels for loading Australia," broker P.F. Bassoe said.
The Baltic's panamax index .BPNI rose 2.8 percent, with average daily earnings rising to $15,912 in a fifth session of gains. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
The Baltic's main index has remained erratic since 2009 because of swings in Chinese demand for iron ore, the primary ingredient of steel.
Adding to economic headwinds in western industrialised countries, a major source of shipping demand, are inflationary fears in China, which could potentially lead to further interest rate rises and a pullback in demand for ore, delivering another setback for shippers.
The index rose 2.2 percent or 29 points to 1,346 points in a sixth straight rise.
Before the beginning of the move higher last week, the index which tracks the cost of shipping key commodities such as iron ore, cement, grain, coal and fertiliser, had fallen for four previous sessions, and in February it reached its lowest in two years."The capesize market remains in the doldrums, but there is a slightly more positive sentiment to the market lately," said Arctic Securities analyst Erik Nikolai Stavseth."The Panamax market is showing resilience as a new round of South American grain cargoes are propping up the market. We see both panamaxes and capesizes moving higher in the near term."
Recent floods and cyclones in Australia have hit coal production and many producers have declared force majeure at their operations, which has hurt capesize activity.
The Baltic's capesize index .BACI rose 2.66 percent, with average daily earnings inching higher to $5,704 in a fourth day of light gains. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"The (capesize) market was slightly more positive this week in both basins. A few more cargoes appeared for transatlantic trade this week. Also in the Far East there was some more demand for vessels for loading Australia," broker P.F. Bassoe said.
The Baltic's panamax index .BPNI rose 2.8 percent, with average daily earnings rising to $15,912 in a fifth session of gains. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
The Baltic's main index has remained erratic since 2009 because of swings in Chinese demand for iron ore, the primary ingredient of steel.
Adding to economic headwinds in western industrialised countries, a major source of shipping demand, are inflationary fears in China, which could potentially lead to further interest rate rises and a pullback in demand for ore, delivering another setback for shippers.