Baltic index gains on higher capesize, panamax rates

Reuters
14 Apr
Baltic index gains on higher capesize, panamax rates

April 14 (Reuters) - The Baltic Exchange's dry bulk sea freight index, which tracks rates for vessels transporting dry bulk commodities, climbed on Monday, driven by higher capesize and panamax prices.

* The main index .BADI, which monitors rates for capesize, panamax and supramax shipping vessels, gained 8 points, or 0.6%, to 1,282.

* The capesize index .BACI added 24 points or 1.3% to 1,827.

* Average daily earnings for capesize vessels .BATCA, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $196 to $15,148.

* The panamax index .BPNI edged four points higher to 1,190, snapping a nine-day losing streak.

* Average daily earnings for panamax vessels .BPWT, which usually carry 60,000-70,000 tons of coal or grain, was up $39 at $10,712.

* "I anticipate a stabilization of the current positive momentum, as Chinese imports across major commodities continue to decline — particularly in soybeans and coal," said Yiannis Parganas, head of Intermodal's research department.

* China last week raised tariffs on all U.S. imports to 125%, in response to U.S. President Donald Trump's tariff action. That came on top of the 10% to 15% levies imposed in early March on some $21 billion worth of U.S. agricultural and food products, pushing tariffs on U.S. soybeans to 135%.

* Among smaller vessels, the supramax index .BSIS shed three points, or 0.3%, to 936.

* For the near-term outlook for the sector, "bulk carriers are anticipated to face challenges, as rising protectionism is expected to dampen trade activity. At the same time, fleet expansion — driven by new vessel deliveries scheduled for 2025 — is projected to outpace the growth in commodity demand," Parganas said.

(Reporting by Sarah Qureshi in Bengaluru; Editing by Sahal Muhammed)

((SarahS.Qureshi@thomsonreuters.com;))

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