The Baltic Dry Index, a gauge of bulk shipping costs, rose to its highest level in 18 months, led by a sharp jump in Capesize rates on stronger iron ore and coal cargoes out of Brazil and Australia.

Daily earnings for Capesize vessels topped $28,000, according to the Baltic Exchange, as a wave of restocking demand from Chinese steelmakers collided with a tighter available fleet following a run of dry-docking surveys.

Panamax and Supramax rates also firmed, supported by grain exports from the US Gulf and a pickup in coal shipments to South and Southeast Asia.

Shipbrokers expect rates to stay firm into next month, though newbuild deliveries scheduled for later this year could cap further gains once the current cargo wave clears.