Baltic index hits near one-month low on lower capesize rates

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The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, fell to a near one-month low on Tuesday due to lower demand for capesize vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 46 points, or 2.4%, to 1,894, its lowest level since June 12.

The capesize index dropped 157 points, or 4.8%, to 3,119, its lowest level since June 25.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $1,302 at $25,869.

Dalian iron ore futures prices fell on Tuesday, weighed down by concerns about demand in China, although investors hoped for more stimulus from a key meeting next week.

The panamax index snapped 15-session losing streak as it edged up 5 points, or about 0.3%, to 1,536.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, rose $41 to $13,820.

Among smaller vessels, the supramax index gained 13 point, or 0.1% to 1,347.

Shipping giant Maersk said one of its vessels, the Maersk Sentosa, reported being targeted by a flying object in the north of the Gulf of Aden early on Tuesday.

Source: Reuters