Baltic index snaps 5-day winning streak on lower vessels rates

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The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, snapped its five-session gaining streak on Wednesday, weighed down by lower rates across all vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 115 points, or 5.3%, to 2,064.

The capesize index dropped 308 points, or 7.9%, to 3,580.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $2,560 at $29,688.

Iron ore futures prices rose for a fourth straight session to their highest level in four weeks, supported by firm near-term demand in top consumer China and lingering expectations of more stimulus in coming weeks.

The panamax index fell 33 points, or about 2%, to 1,607, its lowest level since Feb. 10.

Average daily earnings for panamax vessel, which usually carry about 60,000-70,000 tons of coal or grain cargo, declined $300 to $14,459.

Among smaller vessels, the supramax index fell 11 points, or 0.8% to 1,340.

Yemen’s Houthis are sending drone boats packed with explosives into the Red Sea as they intensify their attacks on merchant ships that have little defence against the “sophisticated shift” in tactic, maritime security sources say.

Source: Reuters