Baltic index falls as larger vessel rates dip

LONDON : The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, retreated on Monday due to weaker larger vessel rates.

The index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 6 points to 809 points, snapping a six-session winning streak.

The capesize index was down 30 points at 810 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $248 to $6,716.

Iron ore futures gained on Monday as earlier losses triggered by U.S. President Donald Trump’s latest tariff threats were countered by signs of recovering demand in top consumer China and falling shipments from major suppliers.

Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the U.S., on top of existing metals duties, in another major escalation of his trade policy overhaul.

The panamax index shed 7 points to 1,028 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, decreased by $70 to $9,248.

Among smaller vessels, the supramax index was up 17 points at 694 points, posting gains for the fifth straight session.

Source: Reuters