The Baltic Dry Index (BDI) has soared to its highest level of the year as capesize bulkers continued to surge for a fourth day.
The index, a broad-based measure of the strength in the dry bulk spot market, moved higher by 113 points on Monday to reach 2,831. The figure marked the highest level for the BDI since 14 December.
While all of the bulker sectors that are components in the Baltic Exchange’s flagship index were on an upward march, capesizes posted the day’s largest gains.
The Baltic Exchange’s Capesize 5TC, a measure of spot rates across five key routes in the sector, jumped 10% on Monday to reach more than $26,400 per day, which continued a rally that started on Wednesday and marked a level also not seen since mid-December.
The exchange’s route assessments showed the day’s spot market strength was broad-based but felt most acutely in the Atlantic market, where shipping a capesize cargo from the Brazilian iron ore port of Tuburao to China was worth $32.50 per tonne.
That was an increase on the $30.43 per tonne price for the journey on Friday and marked the highest rate for the route since a market spike in October.
The day’s jump on the trade translated to a $4,391 boost to time-charter equivalent rates for a roundtrip journey, with the Baltic Exchange assessing a round-trip voyage from China to Brazil and back at just over $26,600 per day.
Fixture data from the Baltic Exchange shows rates for Brazilian iron ore movements may be pointing even higher than reflected in its market assessments, with charterers tied to deals at rates as high as $35 per tonne to carry iron ore to China.
In one, Louis Dreyfus Commodities picked up an unnamed Classic Maritime capesize on Thursday to move 170,000 tonnes of the commodity from Tuburao to Qingdao, China, at $32.25 per tonne.
In other late-emerging deals from last week, fixtures for Diana Shipping’s 182,000-dwt Florida (built 2022) and Oldendorff Carriers’ 179,000-dwt William Oldendorff (built 2017) fetched $33.70 per tonne for Sudeste-to-Qingdao runs.
Dealmaking on Monday was even higher.
US industrial conglomerate Koch Industries is rumoured to have jumped into the market to book Golden Ocean Group’s 181,000-dwt Golden Kaki (built 2014) at $35 per tonne for loading in late June, according to the Baltic Exchange. And trader Mercuria was linked to a fixture for the Golden Ocean’s 181,000-dwt Golden Houston (built 2014) at $34 per tonne for loading in the second half of June.
Both fixtures involve moving iron ore from Tuburao to Qingdao.
While larger vessels dominated the day’s strength, panamaxes and kamsarmaxes also experienced upward momentum on Monday.
The Baltic Panamax 5TC, which average spot rates for kamsarmax-size vessels on five benchmark routes, gained $512 on Monday to reach just under $29,100 per day.
“A positive beginning to the week for the sector with both basins making gains. Brokers spoke of more enquiry in the US Gulf and North Coast South America which saw bids improve in recent days,” Baltic Exchange analysts said in their daily report.
“Brokers spoke of more enquiry in the Pacific Region in general which helped levels from both the US West Coast and Australia improve.”
