Weaker demand across vessels drag Baltic index to near 1-year low

Ships used to carry grains for export are seen next to a dredging boat (L) on the Parana river near Rosario, Argentina, January 31, 2017.  Picture taken January 31, 2017. REUTERS/Marcos Brindicci

The Baltic Exchange’s dry bulk sea freight index fell for a ninth straight session on Wednesday, touching its lowest level in about a year, on weaker demand across all vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax vessels, fell 74 points, or 4.5%, to 1,570, its lowest since February 2021.

The capesize index dropped 90 points, or 6.8%, to 1,226, its lowest since mid-February last year.

Heavy rains in Brazil led to a decline in iron ore inquiries from the area, while coal routes have come under further pressure in the current week, shipbroker Intermodal said in a weekly note dated Tuesday.

Average daily earnings for capesize vessels, which transport 150,000-tonne cargoes such as iron ore and coal, dropped by $744 to $10,169.

The panamax index slipped 128 points, or 5.8%, to its lowest since April at 2,095.

Average daily earnings for panamax vessels, which ferry 60,000-70,000 tonne coal or grain cargoes, fell $1,159 to $18,852.

The supramax index eased 28 points to 1,812.

Source: Reuters

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