The Baltic Exchange’s main sea freightindex rose to its highest in over three weeks on Wednesday as demand for capesizes rebounded and rates for the panamax vessel segment scaled ten-year highs.

The Baltic dry index, which tracks rates for capesize,panamax and supramax vessels ferrying dry bulk commodities,surged 261 points, or 17.5%, to 1,756, recording its fifth straight session of gains.

The index was at its strongest since Jan. 25.

The capesize index leapt 427 points, or 28.8%, to1,912,a near three-week high.

Average daily earnings for capesizes, which typicallytransport150,000-tonne cargoes such as iron ore and coal, rose by $3,542to $15,856.

Better shipping demand post the Chinese New Year and cargocombination from panamax to capesize are expected to support thelarger segment, ship broker Intermodal said in a weekly researchnote.

“With Panamax rates continuing to rally and ship fuel prices firm, the capesize segment is expected to react upwards through the week,” Intermodal added.

The panamax index climbed 346 points, or 15.9%, to2,518, its highest since September 2010.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, were up $3,110 at $22,659.

The supramax index advanced 78 points to 1,340,its highest since September 2019.

Source: Reuters