Baltic index snaps 19-session winning streak as larger vessels weigh

LONDON : The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, snapped its 19-session winning streak on Thursday, weighed by weakness in the capesize and panamax segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 43 points, or about 2.7%, to 1,560 – its biggest dip since Feb. 15.

The capesize index lost 128 points, or about 6.1%, to 1,976.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $1,066 to $16,387.

Dalian and Singapore iron ore futures slumped on Thursday, along with steel benchmarks in China as sentiment soured, mirroring a broader risk aversion triggered by fears of a banking crisis.

The panamax index was down 22 points, or about 1.2%, to snap its 17-session winning streak at 1,746.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $196 to $15,716.

Among smaller vessels, the supramax index rose 16 points, or about 1.2%, to 1,312.

“The trend across all markets remains positive despite some areas such as USG and North Atlantic, (which) could see softer rates as the number of ships is greater than the number of new requirements,” shipbroker Fearnleys wrote in a weekly report, referring to the supramax segment.