The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels moving dry bulk commodities, slipped to an over four-week low on Tuesday due to lower demand across vessels amid persistent trade tensions.
The main index, which monitors rates for capesize, panamax and supramax shipping vessels, shed 59 points or 4.21% to 1,342, its lowest since March 6.
The capesize index fell for the eleventh straight session to its lowest since March 5, slipping 102 points or more than 5% to 1,915.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, fell $847 to $15,881.
“In the capesize segment, the supply/demand balance has weakened, as cargo loadings decreased,” said Filipe Gouveia, a shipping analysis manager with BIMCO.
The panamax index dropped 78 points or 5.75% to 1,278.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was down $700 at $11,501.
Among smaller vessels, the supramax index dipped 11 points or 1.1% to 954, reaching an over three-week low.
“Currently, there is high market uncertainty over the impact of the increase in tariffs by the U.S. and China’s retaliation. These could have a negative impact on both countries’ economies and are expected to impact commodities transported primarily by segments smaller than capesize,” Gouveia added.
U.S. President Donald Trump threatened additional 50% tariffs on China, the world’s second-largest economy, starting Wednesday, after Beijing vowed to “fight to the end” in response to the ongoing tariff war.
Source: Reuters