Baltic index snaps five-day rally as capesize rates sink

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The Baltic Exchange’s main sea freight index snapped a five-session winning streak on Thursday, as rates for the capesize vessel segments dipped.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 37 points, or 1.7%, to 2,166.

The capesize index .BACI dipped 136 points, or 3.8%, to 3,405 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes of iron ore and coal, among others, decreased $1,127 to $28,238.

Prices of iron ore and steel products in China declined on Thursday, pressured by weaker steel demand as stockpiling needs eased after the country’s Labour Day holiday.

The panamax index was up 15 points, or about 0.8%, to 2,020.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, added $136 to $18,180.

Among smaller vessels, the supramax index was also up 11 points, or 1.1%, to 1,488.

Source: Reuters