Baltic index falls to 19-month low on weaker vessel rates

LONDON : The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, hit its lowest in more than 19 months on Monday as rates dipped across all vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 30 points, or 3.04%, to 957 points for its lowest since June 2023.

The capesize index slipped 66 points, or 4.74%, to a two-week low of 1,327 points.

Average daily earnings for capesize vessels, which typically transport cargoes of 150,000 metric tons, such as iron ore and coal, lost $547 to $11,008.

The panamax index slipped 4 points to 893 points, its lowest since February 2023.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain, dropped by $34 to $8,036.

Meanwhile, prices of iron ore futures rose for the eighth consecutive session as potential easing of tensions between China and the United States buoyed market sentiment, though concerns over a sluggish property sector in top consumer China limited gains.

Among smaller vessels, the supramax index was down 20 points at 727 points.

Source: Reuters