The Baltic Dry Index, a measure of shipping costs for commodities, advanced for the first time in more than two weeks.
The Baltic Dry Index, a measure of shipping costs for commodities, advanced for the first time in more than two weeks as owners refused to accept lower rates. The index tracking transport costs on international trade routes rose 20 points, or 0.9 per cent, to 2,183 points last Friday, according to the Baltic Exchange. The climb was the first since Sept 10. Gains were led by a 4.8 per cent jump in rates to hire capesize vessels that haul coal and iron ore. Rentals for the vessels have still dropped 38 per cent this month.
'Rates dropped significantly for most of the week' for capesizes, the exchange said in a note. 'As levels dropped near to many owners' operating costs, some resistance was evident. Charterers attempted to bring the rate below US$7 on the West Australia-to- China run, but have so far failed.'
Rates on the route, a benchmark for iron-ore shipments, fell as low as US$7.06 a tonne last week, the lowest since April 17, before rising to US$7.81 on Friday.
China is the biggest user of the steel-making material that will account for 28 per cent of all dry-bulk commodities hauled at sea globally this quarter, estimates from Drewry Shipping Consultants Ltd in London showed.
Expectations for capesize hire rates rose the most in more than two months last Thursday.