The Baltic Exchange’s main sea freight index marked its largest single-day percentage rise on Thursday, as capesize vessel segment rates jumped 50% on strong iron ore demand.
The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capesize, panamax and supramax vessels, rose 281 points, or about 22.6%, to 1,527, its highest since Dec. 10.
The Baltic capesize index jumped 1,217 points, or 49.6%, to 3,672, its highest since Sept. 25.
Average daily earnings for capesizes, which typically transport cargoes of 170,000 tonnes to 180,000 tonnes, including iron ore and coal, increased by $6,244 to $25,280.
Dalian iron ore has risen 32% in the second quarter, amidst worries about disruptions in Brazil’s iron ore supply and hopes that China will step up its economic stimulus effort.
Inventories of the steel-making ingredient have declined steadily over the past three weeks in China, dropping to 107.75 million tonnes last week, their lowest since October 2016, SteelHome consultancy data showed.
The panamax index rose 98 points, or 9.6%, to 1,117.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose $885 to $10,055.
The supramax index rose 14 points, or 2.2%, to 648.
(Reporting by Anjishnu Mondal; Editing by Vinay Dwivedi)