Baltic index slips on weaker rates across bigger vessels

LONDON : The Baltic Exchange’s main sea freight index dipped on Monday to its lowest level in over eight months, dragged down by less demand across the capesize and panamax segments.

The index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 30 points to 1,546 points, its lowest since early February.

The capesize index fell 85 points to 2,191 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $701 to $18,174.

Iron ore futures rose as near-term demand remained firm and the latest rate cut in top consumer China lifted sentiment, but gains were capped by caution on exactly how much boost the steel market would receive.

The panamax index eased 7 points to 1,278 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, fell by $60 to $11,502.

Among smaller vessels, the supramax index was steady at 1,250 points.