The Baltic Dry Index has risen above the 2,000-point level for the first time since July last year, powered by a massive upgrade to the assessment of average capesize spot rates.
The index, which is an overall indicator of the strength of bulker markets excluding handysizes, rose by 86 points on Tuesday to reach 2,058.
The BDI has been on an upward trajectory since the start of September, powered by a new shot of optimism for the third quarter, which is seasonally the strongest period of the year for capesizes.
Capesizes contribute the largest weighting — 40% — to how the BDI is calculated. Panamaxes and supramax assessments each make up 30% of the calculation.
Tuesday delivered a massive shot in the arm to the capesize spot market, following a series of voyage fixtures reported at much firmer rates.
A massive $2,000 was added on Tuesday to the assessment of average capesize spot rates across five key benchmark routes, which Baltic panellists assessed at $30,348 per day. This is the highest assessment since late May last year.
Tight tonnage supply in the North Atlantic has been driving up rates in the basin dramatically, even with a dearth of reported deals.
Trips to China and Japan from the European Continent and Mediterranean were assessed at $5,219 higher than Monday at $52,500 per day.
Transatlantic round-trips from Europe were estimated at almost $2,000 more expensive than Monday at $41,063 per day.
In the Pacific, fixtures reported on Monday showed firmer prices for iron ore voyages from Western Australia to China. Miner Rio Tinto reportedly booked two capesizes at $10.65 and $10.70 per tonne for loading dates at the end of October, including 1 November.
While the capesize market takes off, the same cannot be said of the panamax and supramax markets, where rates remain mediocre and fixing activity has been slow.
A paltry $112 was added on Tuesday to the Baltic’s assessment of average spot rates across the five major panamax routes (5TC), which was assessed at $14,087 per day.
Likewise, Baltic panellists added a mere $87 to the weighted average of supramax spot rates (10TC), which was $14,047 per day.
This year has been an underwhelming one for dry-cargo markets in terms of freight rates.
This year to date, the BDI has averaged 1,214 points, way down on the 2,056-point average seen over the same time frame in 2022.
