Baltic index falls to 1-month low after rates slip across vessel segments


The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell to a one-month low on Thursday, as rates slipped across vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 170 points, or 9.3%, to 1,662.

The capesize index lost 475 points, or 16.2%, to 2,465, registering its sixth consecutive session of declines.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, lost $3,940 to $20,446.

“On a whole, market has moved downwards with diminishing optimism,” analysts at Fearnleys wrote in its weekly report about capesize vessels.

Dalian and Singapore iron ore futures were subdued amid worries that Chinese demand for the steelmaking ingredient will remain weak in the near term, overshadowing China’s stepped-up fiscal support for its flagging economy.

The panamax index declined 21 points or 1.3%, to 1,628, lowest since Oct. 18.

Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, fell $188 to $14,652.

Among smaller vessels, the supramax index slipped by 20 points or 1.6%, to 1,227 – its lowest level in a month.

Ukraine has suspended the use of its new Black Sea grain export corridor due to a possible threat from Russian warplanes and sea mines, the Kyiv-based Barva Invest consultancy and a British security firm said.

Source: Reuters


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