Baltic Index slips on lower Capesize Vessel Rates

LONDON : The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, slipped on Wednesday, pressured by lower rates for capesize vessels.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, dropped 8 points, or 0.6%, to 1,423 points. The contract hit its lowest level since June 2.

The capesize index fell 97 points, or about 5.5%, to 1,654. The contract was down for a seventeenth straight session.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $806 to $13,715.

Iron ore futures prices rose for a second straight session on Wednesday, aided by falling shipments and resilient demand, although mixed factory data in top consumer China curbed the gains.

The panamax index rose 52 points, or 3.3%, to 1,621, marking its highest level since August 7 last year.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained $469 to $14,590.

Among smaller vessels, the supramax index added 26 points, or 2.3%, to 1,151.

Source: Reuters