Baltic index sees worst day in six weeks as vessel rates falter

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The Baltic Exchange’s dry bulk sea freight index fell for a fourth straight session on Tuesday to mark its worst day since early November, as rates slipped across all vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax vessels, dropped 284 points, or 8.8% – biggest since Nov. 3 – to 2,932.

The capesize index lost 758 points, or 16.1%, to 3,960, its lowest level since Nov. 26.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, decreased by $6,289 to $32,838.

“A slowdown may be witnessed as we are reaching the year’s end, with refreshed demand being expected for the beginning of 2022,” Allied Shipbroking said in a weekly note, in reference to capesizes.

Chinese coking coal and coke futures rose on Tuesday, led by an over 6% jump in the metallurgical coal on supply worries fuelled by imports of the ingredient remaining at relatively low levels.

The panamax index shed 116 points, or 3.9%, to its lowest in almost two weeks at 2,879.

Average daily earnings for panamaxes, which carry 60,000-70,000 tonne coal or grain cargoes, decreased by $1,041 to $25,911.

The supramax index fell 2 points to 2,550, snapping a 15-session winning streak.

Source: Reuters

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