The largest ore carriers gained for a 10th day as unprofitable rates are leading owners to market fewer of their vessels, according to Commodore Research.
Daily earnings for Capesizes, the largest commodity carriers, rose 4.5 percent today to $4,166, according to the Baltic Exchange, the London-based publisher of freight rates. The increase helped the Baltic Dry Index, a broader gauge of raw-materials shipping costs, add 0.9 percent to 1,013 points.
Ship owners are idling vessels or choosing not to list them as available as rates remain below operating costs, said Jeffrey Landsberg, president of New York-based consultant Commodore. Daily income averaged $3,884 a day last month, the lowest since at least 1999, exchange data show. Capesizes cost $7,437 to operate, including crew, insurance and repairs but not fuel, according to figures from accounting firm Moore Stephens.
“The increase in the last few days is not because of increased demand as much as owners taking vessels out of the market,” Landsberg said by phone today, adding that rates for the vessels will fluctuate between $4,000 and $7,000 a day “for the foreseeable future.”
The smaller vessel types tracked by the bourse were little changed. Panamaxes, which are about half as large, rose 1 percent to $7,910, according to the exchange. Supramax earnings rose 0.6 percent to $13,218 a day while Handysizes, the smallest ships in the index, slid 0.1 percent to $10,405.
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