Capesize index takes record leap as BHP Billiton and Baosteel initial agreement

London: These are see saw days to be a bulk owner. The Baltic Capesize Index leapt 1,108 points yesterday, a record one-day rise, as BHP Billiton and Baosteel agreed a new deal and ship availability on the Pacific became scarce.

BHP Billiton has signed an agreement to supply China's number one mill Baosteel with an additional 94m tonnes of iron ore over ten years.

The Baltic Exchange capesize timecharter average also recorded its highest ever one-day jump of $12,798, up to $93,815 per day from the previous day. The boost provides a wonderful fillip at the end of a torrid January for owners who had seen the index slide by 50% this month.  [31/01/08]