The Baltic Exchange's main sea freight index stayed at over a two and half month high on Friday helped by fresh cargo activity in Brazil and Australia.
The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, stayed at over a two and half month high on Friday helped by fresh cargo activity in Brazil and Australia. The overall index, which gauges the cost of shipping resources including iron ore, cement, grain, coal and fertilizer, rose 1.4 percent or 42 points to 3,043 points on Friday in a seventh session of gains and was at its highest since Aug. 5.
Brokers said firmer demand to lease ships in the Atlantic had helped this week, adding that the interest had given a lift to rates for Capesize vessels typically hauling coal and iron ore cargoes.
''If you look at physical fixtures that have been done, the picture does seem better,'' a freight derivatives broker said.
''The market looks like it will go up. But how long it will last is not clear,'' he said referring to the main index.
In recent weeks there had been better appetite for iron ore in Europe, South Korea, Japan, and Taiwan. Chinese iron ore and coal imports were also picking up, brokers and analysts said.
The main sea freight index hit a more than eight-month high on June 3 of 4,291 but has been erratic since then.
The Baltic's Capesize index rose 1.42 percent on Friday, also notching up a seventh session of gains.
''For the second week in a row the transatlantic markets remained the major focus,'' the Baltic Exchange said in its weekly report, referring to Capesize activity.