The Baltic Exchange’s main dry bulk sea freight index fell on Wednesday, halting a 11-session rally that saw it scale its highest level in over a decade, as the larger capesize vessel segment retreated.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell 8 points to 4,193.
The main index hit its highest level since mid-2010 on Monday, in a rally that analysts attributed to an overall rebound in commodities demand and global shipping constrains.
But potentially easing some of the logjams that had exacerbated an already strained global supply chain, the Meishan terminal at China’s Ningbo port resumed operations on Wednesday following a two-week long shutdown due to a COVID-19 case.
The capesize index fell 1.6%, or 97 points, to 6,109, snapping a 10-session long rally.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, declined $810 to $50,662.
Shipbroker Intermodal said in a weekly note dated Aug. 24 that the capesizes segment could find a higher peak during the second half of the year, attributing the strong gains in the previous week to record high congestion at Chinese ports, among other things.
Meanwhile, Dalian iron ore rose in a choppy session underlining fragile sentiment as improved supply prospects could pressure prices that have collapsed due to weak Chinese demand.
The panamax index rose 39 points to its highest in six weeks at 3,885.
Average daily earnings for panamaxes, which usually carry 60,000-70,000 tonne coal or grain cargoes, increased $354 to $34,969.
Among smaller vessels, the supramax index added 43 points at 3,386, an all-time high, as per Refinitiv Eikon data available since 2017.