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

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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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