Iron-ore shipments to China boost sea-freight index despite hit to shipping due to pandemic.
Reuters reports that on Thursday, the Baltic Exchange’s main sea-freight index posted its first annual gain in three years. Iron ore to China was the main boost for the gain. The dry index which tracks rates for capesize, panamax and supramax vessels was up four points, or 0.3%, at 1,366, its highest level in eight weeks.
The index firmed by 3.1% this week, making it the third weekly rise in a row. The overall index gained by 25.3% for the year. China forges more steel than the rest of the world combined, and even in the depths of a pandemic is set to break a nine-year record.
Her ore imports are a significant driver in sea trade and the capesize market in particular. The capesize index rose 27 points or 1.4% to 2,006 and showed its second weekly rise. Capesizes generally transport cargoes of 150,000 tonnes and their daily earnings were up $224 at $16,633.