Capesize Rates Drag Baltic Dry Index Down Further


The Baltic Exchange’s main sea freight index fell on Wednesday, as rates for the capesize vessel segment dropped to their lowest level in over two years.

* The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 58 points, or about 4.6%, to 1,213 points, hitting its lowest since December 2020.

* The capesize index fell to an over two-year low, sliding 117 points, or about 14.7%, to 680 points.

* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $972 at $5,636.

* Meanwhile, China’s iron ore prices gained more ground, with the market jumping to a one-week high on prospects of strong Chinese demand ahead of the peak construction season.

* The panamax index continued its month-long decline, losing 81 points to 1,491 points. The index shed 5.2%, its worst day in more than seven months.

* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $727 to $13,422.

* The sentiment across the Atlantic and Transatlantic market was “weak for the Panamax market, with a widening tonnage list against limited injection of fresh cargoes,” ship broker Intermodal wrote in a weekly note dated Tuesday.

* Ukraine’s 2022 grain harvest could decrease to between 52.5 million tonnes and 55.4 million tonnes from a record 86 million tonnes due to the Russian invasion which has cut the harvested area, analyst APK-Inform said.

* The supramax index .BSIS rose for a ninth consecutive session, gaining 8 points to 1,773 points.

Source: Reuters