UPDATE 1-Strong vessel demand propels Baltic index to highest in over a decade

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Aug 12 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, jumped to its highest level in over a decade on Thursday, powered by strong demand across vessel segments.

* The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, jumped about 3%, or 93 points, at 3,503, the highest since mid-2010.

* The capesize index rose 224 points, or 5.1%, to 4,608, a peak since May 12.

* Average daily earnings for capesizes, which transport 150,000-tonne iron ore and coal cargoes, rose $1,863 to $38,217.

* "Physical demand has been strong along with the paper market, with demand coming in from the pacific, and helped by a underlying fundamental of strong demand for commodities from the start of 2021," said Rebecca Galanopoulos Jones, head of research at Alibra Shipping.

* "Congestion in Chinese ports, along with some weather concerns in the Pacific have also helped, but where we go from here is anyone's guess," Jones added.

* Congestion off China's top two container ports is worsening following the shutdown of a container terminal in Ningbo.

* "After the stimulus-induced rise in demand for goods such as iron ore, and a return in demand for coal, one of the questions looming in the horizon is what will happen to demand for these commodities as the demand for lower CO2 emissions becomes more and more pressing," Peter Sand, chief analyst for shipping association BIMCO, said in a note.

* The panamax index advanced 34 points to 3,550, its highest since June 22.

* Average daily earnings for panamaxes, which usually carry 60,000 tonne to 70,000 tonne coal or grain cargoes, rose $309 to $31,949.

* The supramax index rose about 30 points to 3,079, a record high as per Refinitiv Eikon data available since 2017.

(Reporting by Rahul Paswan and Bharat Govind Gautam in Bengaluru; Editing by Shinjini Ganguli and Vinay Dwivedi)

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