Bloomberg reported that the Baltic Dry Index, a measure of commodity shipping costs, rose for the first time since November, lifted by gains for the largest vessels as miners sought charters to export iron ore or coal from Australia.
According to the Baltic Exchange, a London-based assessor of freight costs, the index climbed 0.3% to 700. That’s the first gain since November 28th. The index last year averaged the lowest since 1986 because of an oversupply of ships and slowing global demand for commodities.
According to the exchange, average charter rates for Capesizes that ship iron ore and coal rose 2.2% to USD 4,973 a day. Panamax ships, the second biggest of the four vessel sizes tracked by the gauge, fell for a 21st session, sliding 1.4% to USD 5,348 daily, the lowest since October 8th.
According to Clarkson Plc, the biggest shipbroker, the Baltic Dry Index is a benchmark of freight costs for 9,496 dry bulk vessels, with seaborne minerals and grains carried on these ships estimated to reach 4.1 billion metric tonne in 2013.
Higher Capesize rates are anticipated as vessels are needed to ship cargoes by miners in Australia, Freight Investor Services Ltd, a freight and commodities broker, said in an e- mailed note yesterday.
A London based shipbroker said that Iron ore miners in Brazil and Australia, the biggest exporters, are expected to resume hiring ships after a break over Christmas, ICAP Shipping International Ltd.
ICAP said that “There remains some interest in coal cargoes ex-east Australia, but the market is yet to get going.”
