Baltic index falls to over 3-week low on weaker capesize demand

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The Baltic Exchange’s dry bulk sea freight index fell to its lowest level in more than three weeks on Tuesday, weighed down by weaker demand for capesize vessels.

The overall index, which factors in rates for capesize, panamax, supramax and handysize vessels, fell by 18 points, or 0.4%, to 4,714.

The capesize index fell 129 points, or 1.8%, to 7,229, its lowest in almost a month.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell by $1,071 to $59,955.

“2021 will end on a high note even if a slowdown is noted during the final quarter,” Allied Shipbroking said in a weekly note, referring to the shipping industry.

Benchmark iron ore futures on China’s Dalian Commodity Exchange recovered from four consecutive sessions of losses, gaining as much as 1.6% on falling shipments from major suppliers.

The panamax index added 75 points, or 1.8%, to 4,166, its highest in three and a half months.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, increased by $676 to $37,494.

The supramax index added 15 points to a record high of 3,610, according to Refinitiv Eikon going back until 2017.

Source: Reuters

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