Baltic Index falls to near One-Month Low on Weaker Rates

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which tracks rates for vessels transporting dry bulk commodities, fell to a near one-month low on Friday, and logged a weekly decline, as vessel rates weakened across the board.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 89 points, or 3.9%, to 2,205 points, its lowest since November 17. The index logged a weekly loss of 15.9%, its steepest drop since January 20.

The capesize index lost 221 points, or about 5.6%, to 3,706 points, its lowest since November 24. It logged a weekly loss of 22.7%.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $1,838 to $30,731.

Dalian iron ore slipped on Friday and were set for a second weekly loss, weighed down by easing demand in top consumer China and higher portside stocks, although Beijing’s pledge of fiscal stimulus and stabilising property market capped losses.

The panamax index fell by 36 points, or 2.1%, to 1,688 points, its lowest in over two months. The index logged a weekly decline of 6.2%.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $325 to $15,194.

Among smaller vessels, the supramax index lost 16 points to 1,371 points. It saw a weekly fall of 3.4%.
Source: Reuters