Baltic Index logs Fourth Weekly Loss on Lower Panamax, Supramax demand

LONDON : The Baltic Exchange’s Dry Bulk Sea Freight prices rose slightly on Friday, even as the index marked its fourth straight weekly loss due to lower demand among panamax and supramax vessel segments amid a global trade war.

The main index, which monitors rates for capesize, panamax and supramax shipping vessels, gained 5 points or 0.4%, to 1,274. However, the index was down more than 14% for the week.

The capesize index rose by 22 points or 1.2% to 1,803 but was on track for its second weekly loss.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $184 to $14,952.

The panamax index shed 3 points, or 0.3%, to 1,186. The index extended losses to a second straight week and was down over 16% for the week.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was down $32 at $10,673.

China on Friday raised its tariffs on U.S. imports to 125% in response to U.S. President Donald Trump’s tariff hikes on Chinese goods, escalating the trade war and making traders cautious before placing new orders. One of the major dry bulk trade routes of panamax is between the U.S. and China.

Among smaller vessels, the supramax index dropped two points to 939. The index was down for the third straight week and fell over 3% during the week.

Source: Reuters