It is reported that the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, rose for a third straight session on June 12th 2012 on higher rates for Panamax vessels in the Atlantic. The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertilizer, rose nine points or 1.02% to 893 points.

The Baltic's Panamax index rose by 3.28% to 975 points, with average daily earnings for panamaxes, which typically transport 60,000 to 70,000 tonne cargoes of coal or grains, up by USD 247 at USD 7,750.

Shipbroker BRS said that tonnage for panamaxes in the Atlantic has remained relatively stable over the last week. It added that "We need to see further positive signs on the demand side to back up this recovery, otherwise we may see rates flattening."

Wells Fargo said in its weekly report that Indonesian coal reference prices are near 18 month lows, which could support exports, potentially a slight positive for Panamax and Supramax vessels.

Source - Business Times

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