Baltic index extends losses, panamax climbs to over 1-year high


The Baltic Exchange’s main sea freight index declined for the second straight session on Tuesday, dragged by lower capesize rates even as panamax index climbed its highest level in over a year.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 21 points, or 1.2%, to 1,796.

The capesize index lost 121 points, or 4.5%, to 2,586.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $997 to $21,450.

Iron ore futures rose for a second session, with the Singapore benchmark hitting an eight-month high, as sentiment was boosted by Beijing’s latest support for the property sector and concerns lingered over possible supply disruptions.

The panamax index added 54 points, or 2.8%, to 1,969. The index hit its highest level in over a year.

Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, was up $487 at $17,722.

“In the Pacific market, tonnage demand was steady throughout all key routes, supporting a robust rate rise,” shipbroker Allied said in a weekly note on Monday, referring to the panamax segment.

Among smaller vessels, the supramax index gained 15 points, or 1.2%, to 1,232 – its highest level since Oct. 25.

Parts of the river Rhine in south Germany remained closed to shipping after heavy rain this month but falling water levels could lead to a reopening later on Tuesday, navigation authorities said.

Source: Reuters


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