Baltic Index falls to One-Month Low as Larger Vessel Rates Dip

LONDON : The Baltic Exchange’s main sea freight index, which tracks rates for vessels transporting dry bulk commodities, fell to a one-month low on Wednesday, as rates declined across capesize and panamax vessel segments.

The main index slipped to its lowest point since June 3, easing 15 points, or 1%, to 1,443 points.

The capesize index dropped 53 points, or 2.6%, to 1,958 points, an over one-month low.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $435 to $16,242.

Iron ore futures climbed across all benchmarks as shipments from top exporters Australia and Brazil dropped, while an increase in hot metal output buoyed investor sentiment.

The panamax index slipped 8 points, or 0.5%, to 1,492 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was down by $74 to $13,424.

Among smaller vessels, the supramax index gained 13 points to 1,031 points.

Allied Shipbroking in a note on Tuesday said “the U.S. Gulf market softened under growing prompt supply and sluggish demand, while the South Atlantic remained steady with limited fixing.”

“The Pacific proved more encouraging as Indonesian and NoPac demand lifted sentiment and allowed owners to resist charterers’ attempts to trim rates.”

Source: Reuters