Baltic index extends losses for 11th session on weaker vessel rates

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The Baltic Exchange’s dry bulk sea freight index fell for the 11th straight session on Thursday, dragged lower by a dip in rates across its vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax vessels, fell by 123 points, or 4.3%, to 2,769, its lowest level in five months.

The capesize index fell 54 points, or 1.7%, to 3,221, its weakest since June 10.

Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell $452 to $26,710.

Chinese stainless steel futures fell more than 2% on Thursday as traders anticipated higher production this month after some key producing regions relaxed power curbs.

The panamax index fell 189 points, or 5.6%, to 3,166, touching its lowest since June 9.

Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, decreased by $1,699 to $28,492.

“All routes are down due to lack of demand, and a growing tonnage list in both hemispheres,” ship broker Fearnleys said in a weekly note, referring to the decline in panamax rates.

“But we do believe we will find a logical bottom very soon,” the shipbroker added.

The supramax index fell 165 points to 2,563, its weakest since June 10.
Source: Reuters

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