Baltic index rallies capes at near 9 month high ~ Steel Guru

Saturday, September 3, 2011

Baltic index rallies capes at near 9 month high

1:50 AM Unknown No comments

The Baltic Exchange's main sea freight index which tracks rates to ship dry commodities, rose to its highest in nearly eight months on Thursday as a surge in coal and iron ore bookings on the larger capesizes bolstered sentiment and earnings.

Brokers said a growing ship glut was set to cap dry bulk freight rate gains in the coming months.

The overall index rose 3.89 percent or 63 points to 1,682 points, in a second day of gains and was at its highest since Jan. 4. Before Wednesday's rise it had fallen for three sessions. The index had hit a near seven-month high last month.

Brokers said firmer coal and iron exports from Australia had boosted the capesize market.

RS Platou Markets said that "The fixture activity accelerated in both basins with Pacific and Transatlantic round voyage rates seeing the maximum gains as charterers rushed to fix open cargoes.”

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