Baltic Index loses ground for Third Straight Week on Lower Capesize Demand

LONDON : The Baltic Exchange’s main sea freight index, which monitors rates for vessels transporting dry bulk commodities, edged up on Friday but registered its third consecutive weekly loss, pressured by weak capesize rates.

The main index was up 2 points, or 0.1%, at 1,436, snapping a seven-day losing streak. However, the index was down 5.6% on the week, marking its third weekly loss.

The capesize index slipped 39 points, or more than 2%, to 1,855, continuing its decline since June 17. The index logged a weekly loss of 16.4%.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, decreased by $323 to $15,382.

Prices of iron ore futures extended gains, notching up a second consecutive weekly rise, driven by improved market sentiment after officials in top consumer China called for curbs on aggressive price competition.

Earlier this week, China’s leaders called for stricter measures against aggressive price-cutting competition among Chinese companies.

The panamax index gained 13 points, or 0.9%, to 1,520, its highest level since September 2024. It ended the week 1.1% higher.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, added $118 to $13,683.

Among smaller vessels, the supramax index rose by 29 points, or 2.8%, to 1,081 points, logging its fourth straight week of gains.

Source: Reuters