Baltic Index Falls, Posts Weekly Decline On Lower Capesize, Panamax Rates

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight index, which measures shipping rates for vessels transporting dry bulk commodities, fell to a more than two-week low on Friday and logged a weekly fall, as weak rates in capesize and panamax segments weighed.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, lost 17 points, or 1.29%, to 1,299, and logged a weekly loss of 8.6%. It also touched its lowest level since April 22.

The capesize index fell by 43 points, or 2.45%, to 1,709, and fell over 17% for the week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $363 to $14,169.

Iron ore futures traded in a tight range on Friday as investors weighed prospects of easing Sino-U.S. trade tensions against seasonally weak demand from top consumer China.

The panamax index shed ten points, or 0.73%, to 1,353, and slipped 1.1% for the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was down $96 to $12,173.

Meanwhile, U.S. container imports surged in April as companies raced to avoid President Donald Trump’s tariffs, which now include a 145% duty on goods from China, but executives at the country’s two busiest ports said the trend looked set to reverse in May.

Among smaller vessels, the supramax index added one point to 969, and posted a 1.5% weekly rise.

Source: Reuters