Baltic Index drops to one-week low as larger vessel rates dip

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The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, fell for the third consecutive session to a one-week low on Thursday as rates declined across larger vessel segments.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was down 123 points, or 6.6%, at 1,751, the lowest level since June 11.

The capesize index lost 364 points, or about 10.6%, to 3,078, the lowest in more than a week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $3,022 to $25,524.

Iron ore futures prices snapped a five-day losing streak on Thursday amid heightened steel production in top consumer China, though gains were partially offset as a protracted crisis in China’s property market continued to weigh on demand prospects.

The panamax index fell 25 points, or 1.8%, to 1,353.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, lost $231 to $12,174.

Among smaller vessels, the supramax index gained 14 points to 963, highest level in three weeks.

Source: Reuters