Baltic Dry index posts weekly loss as capesize rates fall

LONDON : The Baltic Exchange’s main sea freight index, which tracks rates for vessels transporting dry bulk commodities, fell on Friday, marking its second consecutive weekly decline, pressured by a drop in capesize vessel rates.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, was down 32 points, or 2.1%, at 1,521, hitting its lowest level since June 4. The index was down over 8% for the week.

The capesize index fell 125 points, or 5.3%, to 2,220. The contract was down for a ninth straight session. The index logged a weekly loss of 18.5%.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $1,039 to $18,408.

Iron ore futures rose on Friday, posting their largest weekly gain since May 16, on falling iron ore and steel inventories, outweighing Taiwan’s anti-dumping duties.

The panamax index rose 22 points, or 1.5%, to 1,490, gaining for the fifth straight session. It ended the week over 8% higher.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, increased $196 to $13,410.

Among smaller vessels, the supramax index gained 9 points, or 0.9%, to 1,009.

Source: Reuters