Baltic Index hits 2-week low on weaker capesize demand

LONDON : The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell to a two-week low on Tuesday due to lower demand for capesize vessels.

* The main index BBDI, which tracks rates for capesize, panamax and supramax shipping vessels, was down 58 points, or 2.9%, at 1,964 points, hitting its lowest level since August 5.
* The capesize index (.BACI) shed 189 points, or almost 6%, to 3,023 points, also reaching a two-week low.
* Average daily earnings for capesize vessels (.BATCA), which typically transport 150,000-ton cargoes such as iron ore and coal, fell by $1,566 to $25,072.
* Iron ore futures prices slid, weighed by concerns about demand for the steelmaking ingredient amid output controls in the northern region of top consumer China and a weakening steel market.
* Some steel mills in China’s key steel production hub of Tangshan have received verbal instructions to trim production to ensure better air quality in Beijing for a military parade commemorating the end of World War Two, consultancy Mysteel said in a note.
* Meanwhile, the panamax index (.BPNI) gained 7 points, or 0.4%, to 1,637.
* Average daily earnings for panamax vessels (.BPWT), which usually carry 60,000-70,000 tons of coal or grain, increased by $64 to $14,737.
* Among smaller vessels, the supramax index (.BSIS) added 8 points, or 0.6%, to 1,369.
Source: Reuters