Baltic index hits one-week low as capesize rates dip

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The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, marked its lowest level in a week on Tuesday, pulled down by weaker capesize rates.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 52 points, or 2.76%, to 1,831 points, hitting its lowest level since June 4.

The capesize index dipped 201 points, or 6.73%, to 2,784, its lowest level since May 30.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes, such as iron ore and coal, was down $1,670 at $23,089.

Iron ore futures fell to a two-month low, weighed down by lingering weak fundamentals and concerns over demand prospects in top consumer China following the latest carbon emission plan for the steel sector.

The panamax index hit its highest level since May 24 and was up 38 points, or about 2.15%, to 1,807 points.

Average daily earnings for panamax vessels, which usually carries about 60,000-70,000 tons of coal or grain cargo, gained $346 to $16,265.

Among smaller vessels, the supramax index was up 14 points, or 1.11%, to 1,271 points.

Meanwhile, parts of River Rhine in south Germany were closed to cargo shipping again after recent rain in south Germany increased water levels, authorities said.

Source: Reuters