Baltic index extends losses on weaker 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 asecond 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, was down 115 points or about 5% to 2,176 points.

The capesize index, dropped by 379 points, or 9.1%, to 3,769.

Average daily earnings for capesize vessels .BATCA, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $3,142 to $31,260.

Dalian iron ore futures prices slid, weighed down by a persistently weak steel market and lack of big-ticket stimulus in top consumer China.

The panamax index added 18 points, or 1%, to 1,823 points. It rose for a seventh straight session.

“The Atlantic saw a subdued demand, facing pressure from an increasing number of ballasters, while the Pacific enjoyed sustained inquiries, particularly from Indonesia and Australia, contributing to a positive regional outlook,” wrote xxx in a note.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, were up $165 at $16,407.

Among smaller vessels, the supramax index, was up 15 points, or 1.2%, to 1,312 points, its highest level since Dec. 22.

Source: Reuters