The dry bulk market is on the upswing on Tuesday amid improved market sentiment.
The Baltic Dry Index shot up 50 points to 1,364, parting from a mostly sideways trend during which it gained 45 points since 10 September.
Capesize rates mirrored this sharp one-day improvement, gaining 138 points to 2,078 since Monday after improving only 122 points during the same 10-day period.
The weighted time charter equivalent (TCE) average for the iron-ore haulers leapt $140 per day from $16,089 per day on Monday after clawing its way up from $15,075 per day on 10 September.
The benchmark Brazil-China roundtrip TCE rate saw the best one-day jump, gaining $1,382 per day on Tuesday to $17,959 per day, Baltic Exchange assessments showed.
"The capesize market sentiment has improved in both the Pacific and Atlantic basins with fixtures levels now being heard at higher levels," the exchange wrote in its daily market report.
Three capesizes were fixed on Tuesday to carry iron ore across the Atlantic from Brazil to China, while two more were hired to take the commodity from Australia to the emerging nation.
Cardiff Marine was able to charter 170,700-dwt Alameda (built 2001) to Oldendorff Carriers at $17.35 per metric tonne for a trip from Brazil to China scheduled for October.
Rates are up
Dry bulk shipping's other asset classes also saw higher TCE rates since Monday, namely supramaxes.
These vessels gained $104 per day from $10,555 per day on a TCE basis while collecting 10 points on the Baltic Supramax Index to 960.
"Little fresh information surfaced today, but sentiment remained strong from Asia and some brokers said a little more enquiry was seen from the Mediterranean and larger tonnage availability remained tight from the north Continent," the exchange wrote.
"Little in the way of fresh enquiry from east coast South America some said."
Calls to several brokers seeking insight on rates were not immediately returned.
Panamax TCE rates gained $41 per day to $11,932 per day on Tuesday, according to the Baltic Exchange. The Baltic Panamax Index eked up 5 points to $1,326.
The Gilbraltar-Taiwan/Japan leg's TCE rate for this asset class gained $259 per day to $20,359 per day.
"Largely driven by an improved mineral demand in the Baltic Sea and a tighter looking tonnage list emerging, many sources felt there was better activity in the North and better sentiment to boot," it wrote.
Rates saw a "largely flat day" amid a Japanese holiday and lack of Australian mineral demand, according to the exchange.
Handysize TCE rates improved $84 per day to $10,186 per day on Tuesday. Its index gained 5 points to 566.
TCE rates for the Europe-Brazil and Europe-US routes both improved $193 per day on Tuesday to $11,629 per day and $11,857 per day respectively.
"Some brokers suggested $11,000s level might be the benchmark for vessels deliver in the region of Skaw-Passero with minimal difference on the redelivery in east coast South America or US east coast / US Gulf area," the exchange added.
