The Baltic Exchange’s dry bulk sea freight index was unchanged on Tuesday as gains in the panamax and supramax segments countered a decline in capesize rates.
The main index, which tracks rates for capesize, panamax and supramax shipping vessels, held steady at 1,261 points.
The capesize index fell 17 points, or about 1%, to 1,661.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $139 to $13,774.
The panamax index rose 19 points, or 1.5%, to 1,292, marking its highest level since April 7.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained 169 points at $11,629.
Among smaller vessels, the supramax index climbed to its highest level since April 8, adding 4 points, or 0.4%, to 954.
The U.S. Trade Representative last week announced exemptions for domestic exporters and vessel owners from port levies on China-built ships to limit China’s shipbuilding dominance.
“Since the charge applies only when a vessel enters a U.S. port from a foreign location with cargo, bulk carriers calling U.S. ports to load exports will not be subject to the fee… Key outbound trades such as U.S. soybean exports to Europe and metallurgical coal shipments to India will continue without disruption or additional cost exposure,” said Yiannis Parganas, head of Intermodal’s research department.
“The ongoing uncertainty around U.S.-China tariffs is likely to weigh on sentiment, while a projected slowdown in global economic activity will inevitably impact trade volumes.”
China on Monday accused Washington of abusing tariffs and warned countries against striking a broader economic deal with the U.S. at its expense.
Source: Reuters