The Baltic Exchange’s main sea freight index fell to a nearly two-week low on Tuesday as rates across its vessel segments declined.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 53 points, or 2.5%, to 2,061 points, the lowest since July 14.
The capesize index fell for the second straight session, losing 141 points, or 5.4%, to 2,455 points, a near two-week low.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,167 at $20,359.
“The biggest headache moving forward will likely come from the faltering iron ore trade, with China’s latest move in establishing a giant mineral resource group to give it larger control over global iron ore pricing,” said George Lazaridis, head of research and valuations for Allied Shipping Research, about capesize rates in a weekly note.
The creation of the China Mineral Resources Group, Lazaridis added, “is poised to create a further loss in bargaining power for global traders as well as those operating within those supply chains.”
The panamax index was down 12 points, or 0.57%, at 2,088 points, snapping a five-session winning streak.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $110 to $18,790.
Meanwhile, the first shipments of Ukrainian grain could leave Black Sea ports within days under a U.N.-brokered deal to tackle a global food crisis that has worsened since Russia invaded its neighbor, the United Nations and Ukraine said on Monday.
The supramax index fell by 8 points to 2,071 points, its lowest in nearly a week.