The Baltic Exchange’s main sea freight index (.BADI), tracking rates for ships carrying dry bulk commodities, edged down on Monday as rates dropped for capesize and panamax vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 3 points, or about 0.2%, at 1,813.

The capesize index (.BACI) was down 11 points, or 0.5%, to 2,195.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and iron ore, were down $86 at $18,207.

Jefferies said that with global steel markets under pressure and Chinese output declining, softer demand for the steel-making ingredient iron ore, which accounts for nearly 30% of all cargo movements, was weighing on capesizes and “trickling down to the other vessel classes.”

However, Jefferies saw a “promising” outlook for coal, which accounts for nearly 25% of all cargo movements, on resurgent coal demand for several quarters due to ongoing tight energy supplies in Northern Hemisphere.

The panamax index (.BPNI) was down for a fourth consecutive session by 3 points, or about 0.2%, at 1,992.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $32 to $17,927.

The supramax index (.BSIS) rose for the ninth consecutive session, adding 5 points, to 1657.

Source: Reuters