Baltic index extends declines as rates for larger vessels fall


The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the third straight day on Thursday, pressured by lower demand across larger vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 13 points or 0.7% to 1,935.

The capesize index fell by 26 points or 0.8% to 3,278.

Average daily earnings for capesize vessels, which typically transports 150,000-tonne cargoes carrying commodities such as iron ore and coal, declined by $217 to $27,185.

Iron ore futures rose for a second straight session as investors weighed prospects of additional measures to shore up China’s flagging economy against domestic steel production cuts and uncertainty about the country’s property sector.

The panamax index fell 21 points or 1.3% to 1,593, snapping a three-day winning streak.

Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tonnes of coal or grain, lost $193 to touch $14,333.

Among smaller vessels, the supramax index climbed 5 points or 0.4% to 1,266.

“Far east holding up, tight on prompt tonnage and rates better there”, analysts at Fearnleys wrote aboutthe supramax vessel segment in a weekly report.

Source: Reuters


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