Baltic Index hits near two-week low as rates decline across segments

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The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, fell to a near two-week low on Tuesday on reduced demand for all vessel segments.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, lost 44 points, or 3.3%, to 1,296, its lowest since May 14.

The capesize index was down 91 points, or 4.8%, at 1,809.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, fell $752 to $15,005.

Iron ore futures fell for a third straight session amid renewed market talk of crude steel production cuts in top consumer China, which has long been plagued by overcapacity.

The panamax index fell 38 points, or 3%, to 1,208, its lowest level in more than a month.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, receded $349 to $10,869.

Among smaller vessels, the supramax index dipped 9 points to 974, its lowest in more than two weeks

Source: Reuters