Baltic index slips to three-week low on weaker capesize, panamax rates

LONDON : The Baltic Exchange’s main sea freight index fell to over a three-week low on Monday, weighed down by weakness in the capesize and panamax vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell for the fifth straight session by 73 points, or 3.3%, to 2,123 points.

The capesize index lost 187 points, or 5.4%, at 3,295, its lowest level since Feb. 27.

Average daily earnings for capesize vessels, which typically transports 150,000-ton cargoes such as iron ore and coal, decreased by $1,150 to $27,325.

Iron ore futures edged up, supported by hopes of further recovery in demand in top consumer China and Beijing’s pledge to support its struggling property market.

The panamax index extended declines, by 45 points or 2.1%, at 2,120 points.

Average daily earnings for panamax vessels, which usually carries about 60,000-70,000 tons of coal or grain cargo, fell $401 at $19,082.

Among smaller vessels, the supramax index edged up to 1,386 points.

U.S. forces engaged six Houthi unmanned aerial vehicles (UAV) over the southern Red Sea after the group launched four anti-ship ballistic missiles toward a Chinese-owned oil tanker, the U.S. Central Command said on Saturday.