Baltic Index extends falls to hit two-week low

LONDON : The Baltic Exchange’s main Sea Freight index, which measures rates for ships carrying dry bulk commodities, fell for a fourth straight session to a two-week low on Wednesday as demand in all vessel segments weakened.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, fell 114 points, or 5.4%, to 1,995 points, its lowest level since July 16.

The capesize index lost 290 points, or 8.3%, to 3,186, marking its lowest level in a week. The index is down for the third straight session.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $2,408 to $26,422.

Prices of iron ore futures retreated on Wednesday as hopes of more stimulus from top consumer China faded, erasing earlier gains that were underpinned by prospects of a further extension of a tariff truce between the U.S. and the Asian country.

The panamax index slipped 52 points, or 3%, to 1,689, its lowest level since July 9, marking its 11th consecutive session of decline.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $468 to $15,203.

Among smaller vessels, the supramax index shed 10 points, or 0.8%, to 1,271, at more than a two-week low.
Source: Reuters