Baltic index Slips as China Holiday Dampens Capesize Demand
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, marked its biggest one-day percentage decline in over one month, as a holiday in China weighed on demand for capesize vessels.
The index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell for the fourth straight session on Tuesday. It slipped 27 points, or 2.1 percent - the biggest one-day percentage decline since Feb. 28 - to 1,255 points.
The capesize index lost 136 points, or 5.4 percent, to end at 2,382 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $984 to $17,275.
"Sentiment in the Capesize segment is lingering on a softer note with rates to the Far East markets remaining under some pressure as China remains on holiday today," Clarksons Platou Securities analysts said in a note.
China's stock, bond, foreign exchange and commodity futures markets are closed on Apr. 3 and 4 for the Ching Ming Festival holiday. Markets will resume trade on April 5.
The panamax index was down 2 points, or 0.15 percent, at 1,377 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slipped $13 to $11,052.
The handysize index rose 1 point to 542 points.
(Reporting by Swati Verma in Bengaluru)
