Capesize rates lift Baltic Dry Index to record high

(SINGAPORE) The cost of shipping coal, iron ore and other dry-bulk goods has risen to a record, boosted by gains in bigger vessels and a longer line of ships waiting to load at Australia's Newcastle, the world's biggest coal export harbour. Filling up: A coal freighter loading at the Port Waratah facility in Newcastle, Australia The Baltic Dry Index, an overall measure of commodity shipping costs on different routes and ship sizes, added 0.1 per cent to 7,007 on Aug 3, according to the London-based Baltic Exchange. It has been closing at a high since July 24. The Baltic Capesize Index, a measure of rates for the biggest type of bulk carriers on different routes around the world, rose 1.2 per cent to 9,245 on Aug 3, Baltic Exchange data showed. The number of ships waiting to load coal at Newcastle is expected to reach 55 at the end of August and 44 at the end of September, according to the Hunter Valley Coal Chain Logistics Team, which coordinates rail and port movements. There were 51 ships waiting to load the fuel yesterday morning from 49 the week before, Newcastle Port Corp said on its website. Congestion is 'a significant feature in the market absorbing probably in excess of 100 ships, mainly panamaxes and capesize vessels', says London- based Galbraith's Ltd in its weekly report. 'Capesize rates have been the star performer this week and have helped lift the Baltic Dry Index to record levels,' the tanker brokerage says in its Aug 3 report. The daily rate for a capesize carrier, which typically hauls 175,000 tonnes of goods, added US$1,505, or 1.4 per cent, to US$107,593 on average on Aug 3, data from the Baltic Exchange showed. It is the 11th day the rate surpassed US$100,000. The Baltic Capesize Index rose 5.2 per cent last week. Panamax carriers can move 70,000 tonnes of coal and other dry commodities. The daily rate to hire a panamax bulk carrier fell US$794, or 1.4 per cent, to US$57,744 on average on Aug 3, according to the Baltic Exchange. -- Bloomberg