Ocean freight index hits 19-month high

Ocean freight prices for dry commodities hit a 19-month high for capsize ships hauling minerals on top export routes, on strong winter utility demand for coal in Asia, Chinese iron ore demand and firm global steel prices, analysts said.
Prices on London's Baltic Exchange Capesize Index, a composite of key world export routes rose 60 points to 6,036, surging through the 6,000 barrier for the first time since April 2005.
Experts said the move continued to testify to the strength of the ocean shipping sector which has ridden a three year boom on the back of healthy global economic growth and massive Chinese demand for raw materials.
The Capesize Index is some 65 percent higher than this time last year, but still off a record high of 8,911 struck in December 2004 mainly on the back of explosive Chinese demand.