It is reported that Baltic Dry Index declines this week, but one of its components, Baltic Panamax Index rises to the highest level since 2008 thanks to Chinese robust demand for coal.

Much of the coal is being transported in smaller Panamax vessels, which have a capacity of around 60 000 and 80 000 deadweight tonnes. Drought in southwestern China has pushed up demand for coal in recent weeks, leading to record high congestion levels at ports in major exporter Australia already struggling with logistical problems.

It makes Panamax vessels in short on Atlantic Ocean and drive shipping freight rise.

Besides, buy orders of freight derivatives lend another support to boost Panamax shipping market.

(Sourced from www.Mysteel.net)
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