The Baltic Exchange's dry bulk sea freight index, which monitors rates for vessels moving dry bulk commodities, hit a two-week high on Monday on expectations of higher shipping costs after China pledged to charge additional ports fees for U.S. ships.
* The main index, which factors in rates for capesize, panamax and supramax shipping vessels, rose 208 points, or 10.7%, to 2,144 points, its highest since September 29.
* China will slap port fees on U.S.-owned, operated, built, or flagged vessels on Tuesday as a countermeasure to U.S. port fees on China-linked ships starting the same day, China's transport ministry said on Friday.
* "The latest geopolitical developments are creating the potential for further disruption. Container freight rates... are seeing some near-term upside as operators raise rates in anticipation of a disruption," analysts at Jefferies said in a note.
* The capesize index rose 593 points, or 21.2% to 3,392 points, touching its highest since September 29.
* Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $4,916 to $28,132.
* Iron ore futures gained as robust steel exports in top consumer China, along with lower ore shipments, outweighed concerns over renewed Sino-U.S. trade tensions.
* The panamax index rose 42 points to 1,806 points.
* Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, rose by $384 to $16,257.
* Among smaller vessels, the supramax index fell 2 points to 1,400 points.
(Reuters)