The Baltic Exchange’s dry bulk sea freight index, which monitors rates for vessels moving dry bulk commodities, fell for the third successive session on Wednesday, pressured by weak demand for capesize and panamax vessels.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 13 points at 1,637 points.
The capesize index slipped by 41 points to 2,673 points, its lowest level since March 12.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, fell $337 to $22,170.
Iron ore futures were down for a third straight session, as concerns over demand prospects in top consumer China dominated in the absence of details for anticipated stimulus measures in the world’s second-largest economy.
The Baltic index “seems to have weakened compared to the previous week, due to weaker conditions for capesize ships,” said Filipe Gouveia, a shipping analysis manager with BIMCO.
“Forward Freight Agreements currently indicate that the market expects capesize freight rates to remain around current levels in the short term, but to further strengthen from May,” Gouveia said.
The panamax index shed 28 points to 1,377, snapping an eight-session winning streak.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, fell $247 to $12,396.
Among smaller vessels, the supramax index added 22 points to 999 points, a four-month high.
Source: Reuters
The post Baltic Index falls for third straight session on lower capesize, panamax rates appeared first on Shipping Herald.