The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, fell for the third straight session on Wednesday, with the capesize segment hitting an almost two-year low.
The index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 25 points to 776 points.
The capesize index shed 68 points to 711 points, hitting its weakest point since February 2023.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, fell by $559 to $5,899.
Iron ore futures rebounded on Wednesday as investors shifted focus to concerns over potential supply disruptions from major producer Australia and the prospect of growing demand in top consumer China.
The panamax index fell 28 points to 983 points.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, decreased by $253 to $8,848.
After raising steel and aluminum tariffs to 25% earlier this week, U.S. President Trump’s advisers are now finalising plans for reciprocal tariffs.
However, analysts have noted that the hike in tariffs on steel and aluminium will be minimal on the dry bulk sector as most of the U.S. imports come from Canada, Brazil and Mexico.
Among smaller vessels, the supramax index was up 14 points at 724 points.
Source: Reuters
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