Panamax rates boosted by higher grain shipments



The overall index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertilisers, rose 11 points or 1.3 per cent to 855 points.

The Baltic's panamax index rose 1.29 per cent, with average daily earnings for panamaxes up at US$7,542.

Earnings for panamaxes, which usually transport 60,000 to 70,000 tonne cargoes of coal or grains, have dropped 43 per cent this year.

'The Atlantic started to provide much needed support thanks to re-ignited ECSA market, while the Pacific started ... to trend sideways, mainly due to the slacking demand from China,' George Lazaridis of Intermodal Shipbrokers said.

The Baltic's capesize index fell by 0.2 per cent, with the average daily earnings for capesizes down at US$5,531, a drop of about 80 per cent this year. Capesizes typically transport 150,000 tonne cargoes such as iron ore and coal.

'It does not help that Sanko are seeking restructuring, a new cyclone is building up off Western Australia, and the Atlantic market is still inactive,' said broker firm Fearnleys in its weekly report.

Sanko Steamship, one of Japan's oldest shipping firms, is the latest company to announce it is struggling to make payments amid a severe downturn in the dry bulk, tanker and container markets.

Tropical Cyclone Lua was likely to hurtle towards the Western Australia coast by the next morning, as it strengthened to a Category 2 cyclone, and headed south-east towards the east Pilbara coast, reaching Category 3.

The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, is down more than 51 per cent this year.

'With the overcapacity issue having already made its presence felt in the first two months of 2012, it is anticipated that the percentage of orders being delayed or cancelled is likely to accelerate this year, greatly outpacing what was seen in 2011,' Intermodal's Mr Lazaridis said.

Average daily earnings for handysize and supramax ships were up at US$7,432 and US$9,650, respectively. -- Reuters

 

(LONDON) The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose for the 15th straight day last Wednesday as grain shipments boosted panamax rates.