Baltic index continues losing streak as capesize demand remains weak


The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, fell for the fourth straight session on Monday on weaker capesize demand.

The Baltic index, which reflects rates for capesize, panamax and supramax vessels, fell 34 points, or 1.83%, to 1,823 points, its lowest since Aug. 12.

The main index posted its largest monthly percentage fall since January.

The capesize index also fell for the fourth consecutive session, shedding 69 points, or 2.1%, to 3,269 points.

The index has fallen 27.3% in September, snapping four consecutive months of gains.

The average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, dipped by $514 to $24,402

A large number of China’s steel mills have been ordered to shut or limit operations starting last week to curb pollution ahead of a week-long holiday in Beijing, weighing on demand for capesize vessels.

The panamax index slipped 38 points, or 2.1%, to 1,804 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, fell by $304 to $14,140.

The supramax index dropped 12 points to 1,248 points.

Source: Reuters



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