Baltic Index Logs Seventh Straight Fall On Weaker Vessel Rates

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The Baltic Exchange’s dry bulk sea freight index fell on Tuesday for the seventh consecutive session, languishing near a four-month low on lower rates for the bigger capesize vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 36 points, or 2.7%, to 1,324 – its lowest level since mid-September.

The capesize index dropped by 101 points, or 5.4%, to 1,779, logging its seventh straight session decline to its weakest in four months.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $836 to $14,753.

Iron ore futures prices in China posted its eighth consecutive decline on Tuesday as China’s decision to skip an expected rate cut unnerved investors.

Bucking the trend, the panamax index was up 9 points, or 0.6%, to 1,421, for its best session since Dec. 4.

Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tons of coal or grain cargo, rose by $77 to $12,786.

Among smaller vessels, the supramax index was down 18 points to 1,060, extending its losing streak for the 24th session.

Disruptions to Red Sea shipping caused by Houthi attacks will push up prices of consumer goods, an executive from port and freight operator DP World said on Tuesday as a missile struck another vessel in the region.

Source: Reuters