Baltic index dips for 3rd straight session on lower vessel rates

FILE PHOTO: Cargo ships navigate the Panama Canal during an organized media tour by Italy's Salini Impregilo, one of the main sub contractors of the Panama Canal Expansion project, on the outskirts of Colon city, Panama May 11, 2016. REUTERS/Carlos Jasso/File Photo

The Baltic Exchange’s main sea freight index extended its decline for the third session in a row on Thursday, dragged by lower rates across all vessel segments.

The overall index, which factors in rates for capesize, panamax, supramax shipping vessels, lost 194 points, or 6.2%, to 2,933.

The capesize index dipped 509 points, or around 12.8%, to 3,478 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $4,229 at $28,840.

“With a sudden appearance of early ships the value for Pacific rounds has slid… Transatlantic trades better in comparison, with limited tonnage supply combined with substantial base commodity volumes,” shipbroker Fearnleys said on its website, referring to the capesize segment.

Chinese iron ore futures touched a one-week low as downstream demand remained muted, while investors fretted over cues that the world’s second-largest economy is contracting in the second quarter amid COVID-fuelled chaos.

The United States has confiscated an Iranian oil cargo held onboard a Russian-operated ship near Greece and will send the cargo to the United States aboard another vessel, three sources familiar with the matter said.

The panamax index fell 78 points, or 2.4%, to 3,140 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $706 to $28,259.

The supramax index fell 10 points to 2,823 points.
Source: Reuters