Baltic Index extends falls to hit One-Month Low

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight Index extended declines to a one-month low on Monday, as rates across various vessel segments declined amid fears of recession following latest tariff actions.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped to its lowest point since March 7, at 1,401.

U.S. President Donald Trump showed no sign of backing away from his sweeping tariff plans. Major stock indexes plunged on Monday as Trump told reporters that investors would have to take their “medicine” and he would not do a deal with China until the U.S. trade deficit was sorted out.

“No shipping segment can escape the negative impacts of a global recession. So long as the equity markets grapple with the risk of an economic slowdown, shipping equities are likely to remain pressured,” said investment bank, Jefferies, in a note.

The capesize index ( (.BACI)) fell by 202 points, or 9.1%, to 2,017, marking an over-one-month low.

Average daily earnings for capesize vessels (.BATCA), which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $1,676 to $16,728.

Iron ore futures prices sank earlier today, impacted by tit-for-tat tariffs between the U.S. and top consumer China that have widened the global trade war.

The panamax index (.BPNI) continued its decline for the fifth consecutive session, losing 69 points or 4.8% to 1,356.

Average daily earnings for panamax vessels (.BPWT), which usually carry 60,000-70,000 tons of coal or grain, was down $623 at $12,201.

Among smaller vessels, the supramax index (.BSIS) shed 6 points to 965, its lowest since March 17.

Source: Reuters