Baltic index extends losses as demand for larger vessel wane

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The Baltic Exchange’s main sea freight index extended decline for a fifth straight session on Wednesday, touching its lowest level in nearly a month, weighed down by lower rates across larger vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 51 points, or 3.5%, at 1,425 points – its lowest since April 20.

The capesize index dipped 111 points, or 4.8%, to a three-week low of 2,184 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $922 to $18,111.

Meanwhile, Dalian and Singapore iron ore futures climbed to their highest levels in more than three weeks on hopes of improving demand after some mills resumed production.

The panamax index was down 54 points, or 4.1%, at 1,260 points, its lowest in more than two months.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slid $485 to $11,343.

Among smaller vessels, the supramax index edged lower by a point to 1,090 points.

Source: Reuters

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