Baltic index drops for ninth straight session on weaker vessel rates

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The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, dipped for the ninth straight session on Wednesday as rates for all vessel segments weakened.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 54 points, or 3.1%, to 1,708, hitting its lowest level since May 1.

The capesize index fell 122 points, or 4.9%, to 2,377, slipping to a three-month low.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $1,017 at $19,712.

Dalian iron ore futures closed slightly lower after drifting in a narrow range, as market participants weighed weak economic data from top consumer China against hopes of further monetary stimulus following a key Politburo meeting.

The panamax index lost 33 points, or 1.9%, to 1,739, hitting a one-week low.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, decreased $296 to $15,649.

Among smaller vessels, the supramax index was down 14 point, or 1%, to 1,363.

Source: Reuters