Baltic index slips as lower capesize rates offset gains in smaller vessels

Capesize

The Baltic Exchange’s dry bulk sea freight index fell on Thursday, as a dip in capesize rates outweighed gains in the panamax and supramax segments.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell 33 points to 2,104 points.

The capesize index dropped 201 points, or 10.9%, to 1,639 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $1,662 to $13,596.

The panamax index was up 65 points, at 2,699 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $590 to $24,293.

“For the moment, we are seeing vessels, primarily the medium-sized Panamax types that tend to carry the bulk of the grain exports from Black Sea, being diverted towards the Atlantic basin,” Athens-based EastGate Shipbrokers said in a note.

However, “this can lead to a build up of tonnage in South America and the U.S. Gulf and can potentially pressure rates downward.”

Among smaller vessels, the supramax index rose 49 points to 2,520 points.

Source: Reuters

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