FX.co ★ Baltic Dry Index Rises for 5th Day

The Baltic Exchange's dry bulk sea freight index, a key indicator for shipping rates of dry commodities, rose for the fifth consecutive day on Tuesday, climbing approximately 0.6% to reach a new peak of 1,430 points, the highest point since April 4. This uptick was primarily driven by gains in larger vessel categories. Notably, the capesize index, which typically transports large cargoes of 150,000 tons such as iron ore and coal, also witnessed a rise for the fifth day in a row, increasing by 1.4% to a new high of 2,333 points since April 3. Meanwhile, the panamax index, generally used for carrying between 60,000-70,000 tons of coal or grain, ended its eight-day decline with a modest rise of 0.1%, bringing it to 1,108 points. According to Yiannis Parganas of Intermodal, "The capesize sector is leading the charge, with a surge in iron ore exports from Brazil and Australia to China." He also noted that "due to the significant cost advantage of capesize rates over panamax, some shipments are being divided and shifted to panamax vessels as well." On the other hand, the supramax index dipped by six points, reaching its lowest level since April 15, now at 942 points.