Baltic index hits over one-month on lower capesize demand

LONDON : The Baltic Exchange’s main sea freight index continued its decline for the eighth consecutive session on Wednesday, reaching its lowest point in over a month due to reduced demand for capesize vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 61 points to 1,799 points and hit its lowest since August 28.

The capesize index dipped 203 points to 2,786 points. The index hit its lowest since late August.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $1,680 to $23,106.

“Golden Week is perhaps behind the easing of demand for the largest bulkers (capesize),” shipbroker Allied said in a weekly note dated Tuesday.

Prices of Dalian iron ore futures languished on Wednesday as an absence of further fiscal measures following China’s outsized stimulus package disappointed investors and saw the market’s previously stimulus-driven frenzy fade.

The panamax index was up 16 points at 1,457 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, increased by $144 to $13,113.

Among smaller vessels, the supramax index was up 6 points to 1,270.