China Concerns Drive Baltic Index to Another Low

Posted by Michelle Howard
Friday, January 08, 2016
The Baltic Exchange's main sea freight index, which tracks rates for ships carrying industrial commodities, continued its run of record lows on Friday, haunted by reduced China imports.
 
Demand woes across all vessel segments continued to haunt the index, which registered a record low for a fourth session running.
 
The overall index, gauging the cost of shipping dry bulk cargoes including iron ore, cement, grain, coal and fertiliser, fell 3.6 percent to 429 points.
 
The downturn in dry bulk shipping has worsened significantly in recent months as demand for iron ore and coal has declined in the face of slower economic growth in China.
 
"The first part of the year is typically the weakest point for dry bulk freight rates, which have been even weaker considering the low base at which they ended 2015," Clarkson Capital Markets' Omar Nokta said in a note.
 
The capesize index was down more than 14 percent at 343 points, with average daily earnings dropping by $380 to $3,818. Capesize vessels typically transport 150,000-tonne cargoes such as iron ore and coal.
 
Chinese iron ore futures slumped by more than 2 percent to their lowest in more than a week in the expectation that cuts to steel production in the world's top producer will dent demand for the raw material.
 
The panamax index fell 16 points, or 3.56 percent, to 434 points.
 
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $129 to $3,466.
 

(Reporting by Vijaykumar Vedala in Bengaluru)

People & Company News

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

MN100: Klüber Lubrication NA LP

The Company: Klüber Lubrication is one of the world’s leading manufacturers of specialty lubricants, offering high-end tribological solutions to virtually all industries and markets worldwide.

Grand Bahama Shipyard Adds Four Executives

Grand Bahama Shipyard Limited (GBSL), a Caribbean shipyard providing retrofit, refurbishment and revitalization to cruise and commercial vessels, has added four

Bulk Carrier Trends

Fednav's New Bulker Features High-tech BWT System

Fednav Limited,  an  international bulk shipowner in Canada, has welcomed to the Port of Indiana – Burns Harbor, the Federal Caribou, one of seven new oceangoing

Baltic Exchange Board Backs SGX Bid

The Baltic Exchange board has unanimously backed a takeover bid from Singapore Exchange Ltd , a deal that will give SGX access to a trading platform for the multi-billion

NordLB to Shed Shipping Loans to KKR

German state-owned lender NordLB and KKR Credit said they had reached an agreement by which KKR Credit will acquire a $1.5 billion portfolio of shipping loans from

News

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Hanjin Shipping to Submit Self-Rescue Plan

South Korea’s Hanjin Shipping is planning on submitting a self-rescue plan to creditors this week to stave off bankruptcy by Aug. 25, reports Korea Herald quoting local media.

MPA Appoints Koji Sekimizu as Distinguished Visiting Fellow

The S. Rajaratnam School of International Studies (RSIS) and the Maritime and Port Authority of Singapore (MPA) have appointed former Secretary-General of the

Vessels

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Pods Versus Water Lubricated Props

Thordon Bearings has called on the marine industry to investigate the characteristics of both conventional seawater-lubricated propeller shaft systems and podded

Tough Twins: New Fireboats for Port of Long Beach

Canada based naval architect and marine engineering firm Robert Allan Ltd. is a leading designer of high-performance response vessels of many types and in particular,

Logistics

European Owners Lead in Buying Up Secondhand Tonnage

With European owners leading the pack in buying up vessels, the sale and purchase market appears to have been notably active in recent years, reveals Clarkson Research Services Limited.

Monjasa Bags Credit Facility from Société Générale

Danish bunker fuel supplier and shipping firm Monjasa has signed a credit facility with French bank Société Générale for USD 80 million.    A statement from

Portland Auto Exports Drive ConnectOregon Grant

The Oregon Department of Transportation has awarded a ConnectOregon grant of $2.6 million to the Port of Portland along with tenant Auto Warehousing Co. to fund

 
 
Maritime Security Maritime Standards Naval Architecture Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1086 sec (9 req/sec)