FREIGHT: Capesize market recovery, port congestion grows

London (Simpson, Spence & Young) - The dry bulk market rose over the past week with the Baltic Exchange Dry Index rising 18% week-on-week to 3,259 points. This has been a supported by strong recovery in Capesize earnings and further strengthening in the sub-Capesize market.

Average earnings for Capesize vessels increased for the fourth consecutive day to stand at $37,804/day at the end of last week, the highest level since the end of January, before slipping to the current level of $37,431/day.

SSY’s Australian Coal Port Congestion Index has jumped to 17.9 days, the highest for virtually two years. This has encouraged transpacific earnings to rise by $8,275/day, a 37% w-o-w increase to the current level of $30,604/day.

Meanwhile, transatlantic round voyage earnings rose by $10,182/day to $42,432/day on Friday, then falling to $42,023/day by the time of writing.

Panamax average earnings continued to increase over the past five days, up by $4,797/day from one week earlier to $32,520/day, the highest level since mid-January.