Capesize rates push Baltic index to near 4-year highs

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, climbed to its highest level in nearly four years on Monday, mainly driven by a surge in capesize rates.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, rose 36 points, or 2.21 percent, to its highest in nearly four years at 1,662 points.

The capesize index gained 104 points, or 2.58 percent to 4,129 points, a level last touched in December, 2013.

Average daily earnings for capesizes, which typically transport 150,000tonne cargoes such as iron ore and coal, were up $821 to $28,546.

"Capesize vessels have steamed through the weekend maintaining momentum from last week's strong rally ... as sentiment and activity levels continue to hold firm across the regional markets," Clarksons Platou Securities analysts said in a client note.

The panamax index rose 65 points, or 4.35 percent, to end at 1,559 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000-70,000 tonnes, rose $512 to $12,482.

Among smaller vessels, the supramax index remained unchanged at 944 points, while the handysize index also remained unchanged at 626 points. (Reuters)