Baltic index extends fall as capesizes sink to over 3-month low

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The Baltic Exchange’s main sea freight index dipped for a ninth straight session on Thursday, led by tumbling capesize rates as demand for all vessel segments fell.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 128 points, or 7.4%, to 1,603 points, marking its worst day since May 27.

The capesize index dropped 310 points, or 17.3%, to its lowest level since April 20, at 1,480 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell by $2,571 to $12,271.

Dalian and Singapore iron ore futures slumped to one-week lows on Thursday, pressured by worries about an unsustainable demand recovery in top steel producer China and prospects of increased supply.

The panamax index was down 22 points at 1,983 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $198 to $17,849.

The supramax index fell 58 points to 1,747 points.

Source: Reuters