The Baltic Exchange’s dry bulk sea freight index fell to a three-week low on Thursday, as rates across vessel segments dipped following U.S. President Donald Trump’s announcement of sweeping new tariffs on U.S. goods.
The main index, which tracks rates for capesize, panamax, and supramax shipping vessels, eased 43 points or 2.7%to 1,540, declining for the eighth consecutive session.
“Global shipping is expected to be stifled as a result of the broader tariffs announced yesterday,” Jefferies analysts wrote in a note.
U.S. President Donald Trump’s new tariff plan has the ocean shipping industry on edge as he stokes a trade war destined to stanch transport demand and send companies scrambling to manage the fallout.
The capesize index was down 98 points or nearly 4% at 2,337, marking its lowest level since March 6.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, lost $815 to $19,383.
Iron ore futures inched lower after U.S. President Donald Trump unveiled a broad set of reciprocal tariffs, although seasonal demand for the steelmaking ingredient helped cushion the downward trend.
The panamax index extended declines for the third straight session, shedding 32 points or 2.1% to 1,464.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, was down $288 at $13,176.
“This new tariff increase will primarily impact cargoes transported by the supramax and handysize segments, and we expect that the largest affected commodities will be cement and other construction materials,” said Filipe Gouveia, a shipping analysis manager with BIMCO.
Among smaller vessels, the supramax index dropped 5 points to 973, declining for the seventh continuous session.
“Forward Freight Agreements (FFAs) indicate that during the second quarter, freight rates may slightly strengthen for the supramax and capesize segments but marginally decrease for the panamax segment, compared to current levels,” Gouveia added.
Source: Reuters
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