Baltic index extends losses on falling capesize rates

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The Baltic Exchange’s dry bulk sea freight index, tracking rates for ships carrying dry bulk commodities, declined for a third consecutive session on Wednesday, weighed down by weaker rates for the capesize vessel segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 30 points, or 1.7%, to 1,774 points, its lowest level since April 15.

The capesize index shed 113 points, or 4.6%, to 2,345. The index was down for a fourth straight session.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes such as iron ore and coal, decreased by $944 to $19,445.

Iron ore futures prices fell to their lowest level in nearly one week on signs of softening in the steel market due to subdued demand in top consumer China.

The panamax index edged down to 1,910 points.

Average daily earnings for panamax vessels, which usually carries about 60,000-70,000 tons of coal or grain cargo, lost $35 to $17,187.

Among smaller vessels, the supramax index was up by 26 points, or 1.8%, to 1,456 points.

“There was strong demand observed across all loading zones in the Atlantic, further bolstered by substantial coal exports from Indonesia, which enhanced the utilization of Supramax vessel,” Intermodal Research Analyst Chara Georgousi said in a weekly note on Tuesday.

Source: Reuters