The Baltic Exchange's main sea freight index rose to its highest in over three weeks on Wednesday as demand for capesizes rebounded and rates for the panamax vessel segment scaled ten-year highs.
The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, surged 261 points, or 17.5%, to 1,756, recording its fifth straight session of gains.
The index was at its strongest since January 25.
The capesize index leapt 427 points, or 28.8%, to 1,912, a near three-week high.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, rose by $3,542 to $15,856.
Better shipping demand post the Chinese New Year and cargo combination from panamax to capesize are expected to support the larger segment, ship broker Intermodal said in a weekly research note.
"With Panamax rates continuing to rally and ship fuel prices firm, the capesize segment is expected to react upwards through the week," Intermodal added.
The panamax index climbed 346 points, or 15.9%, to 2,518, its highest since September 2010.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, were up $3,110 at $22,659.
The supramax index advanced 78 points to 1,340, its highest since September 2019.
(Reporting by Bharat Govind Gautam; Editing by Aditya Soni)