Baltic Index headed for Weekly Loss on declining Capesize Rates

LONDON: The Baltic Exchange’s Dry Bulk Sea Freight index, which monitors rates for vessels moving dry bulk commodities, extended losses on Friday and was headed for a weekly loss, pressured by declining capesize vessel rates.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 66 points, or 3.2%, to 1,991 points. The index recorded a loss of 3.8% for the week.

The capesize index lost 188 points, or 6.2%, to 2,871 points, hitting a three week-low. The index fell about 8% for the week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $1,556 to $28,811.

Iron ore futures prices dipped on Friday, snapping a three-session winning streak, as demand in top consumer China softened, hit by shrinking steel margins.

The panamax index was unchanged at 1,924 points, and logged a rise of 5.3% for the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, fell by $1 to $17,318.

Among smaller vessels, the supramax index lost 9 points to 1,369 points. The index declined 3.9% for the week.
Source: Reuters