FX.co ★ Baltic Dry Index Shots Up on US-China Tensions

The Baltic Exchange's dry bulk sea freight index, which monitors rates for vessels carrying dry commodities, experienced a notable increase for the second consecutive day. It surged by approximately 10.7%, reaching its highest level since September 29, at 2,144 points. This uptick was predominantly driven by larger vessel segments. As the United States and China implement mutual port fees on each other's ships starting October 14, global shipping costs are expected to rise, intensifying concerns about significant disruptions to the global economy. The capesize index, responsible for transporting cargoes around 150,000 tons, such as iron ore and coal, recorded gains for the third day in a row, soaring by 21.2% to its highest point since September 29, at 3,392 points. Concurrently, the panamax index, typically used for cargoes between 60,000 and 70,000 tons, including coal or grain, increased by 42 points to 1,806 points. Conversely, the supramax index saw a slight decline, easing by 2 points to stand at 1,400 points.