The Baltic Exchange’s main sea freight index, which measures rates for ships carrying dry bulk commodities, fell on Monday as all vessel segments recorded losses.
The main index, which tracks rates for capesize, panamax and supramax shipping vessels, fell 31 points, or 1.4%, to 2,226 points.
The capesize index lost 55 points, or 1.4%, to 3,774.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $460 to $31,296.
Prices of key steelmaking ingredient iron ore also softened on Monday, as investors awaited clear cues from the upcoming high-level Politburo meeting in China and the fresh trade talks between the world’s two largest economies.
The panamax index slipped 40 points, or 2.2%, to 1,798, its lowest level since July 10.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $360 to $16,180.
Among smaller vessels, the supramax index shed 5 points, or 0.4%, to 1,289.
“Recent trade agreements between the US and major partners such as the EU and Japan are a big positive, in our view, in that they remove trade uncertainty and encourage more volumes,” Jefferies analysts said in a note.
The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods – half the threatened rate – and averting a bigger trade war between the two allies that account for almost a third of global trade.
Source: Reuters