Baltic index drops for seventh straight session as capesize rates slip

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The Baltic Exchange’s dry bulk sea freight index extended declines for a seventh consecutive session on Thursday, pressured by weaker rates for capesize shipping vessels.

The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was down 63 points, or 2.9%, at 2,087.

The capesize index was down 169 points, or 4.8%, at 3,361, its lowest level since Nov. 23.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $1,406 to $27,872.

Dalian iron ore futures recorded their best day in two weeks, on tight inventories and expectations of robust Chinese demand.

The panamax index was down 2 points, or 0.1%, at 1,915, snapping a three-session winning streak.

Average daily earnings for panamaxes, which usually carries about 60,000 to 70,000 tons of coal or grain cargo, fell by $16 to $17,236.

Among smaller vessels, the supramax index was down 19 points at 1,378. The index was down for a 12th straight session.

Shipping companies remain in the dark over a new international navy coalition being assembled by the United States to combat attacks in the Red Sea, with many vessels continuing to avoid the area or cancelling contracts, sources said on Wednesday.

Source: Reuters