Baltic index extends decline as larger vessel rates fall

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The Baltic Exchange’s main sea freight index fell for a third straight day on Tuesday, weighed down by a fall in capesize and panamax vessel rates.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 29 points, or 2.4% to 1,194.

The capesize index fell 77 points, or 5%, to 1,461, its lowest since the last week of July.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $635 to $12,117.

“At this point, the bigger size segment seems unable to demonstrate a sustainable face, given the regular shifts in momentum across the different trade regions,” shipbroker Allied said in a weekly note on Monday, referring to the capesize segment.

The panamax index slipped 25 points, or 1.6% to 1,516.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, rose by $225 to $13,647.

Ukraine is considering using its newly-tested wartime Black Sea export corridor for grain shipments after the first successful evacuation of a vessel along the route last week, a senior Ukrainian agricultural official said on Monday.

Iron ore extended its gains, with the Singapore benchmark hitting its highest point in more than three weeks, helped by policy measures to shore up China’s sputtering economic rebound and signs of rising Chinese demand.

Among smaller vessels, the supramax index rose 9 points to 909.

Source: Reuters

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