Lower Rates for Bigger Vessels Drag Baltic Index Down

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the ninth consecutive session on Friday, weighed down by lower rates for larger vessel segments.

The overall index — which factors in rates for capesize, panamax, supramax and handysize shipping vessels — fell 25 points, or 2.2 percent, to 1,109. The index registered a weekly decline of about 7 percent.

"Limited fresh cargoes in the Pacific market" are putting pressure on the dry bulk market, Clarksons Platou Securities analysts said in a note.

The capesize index shed 19 points, or 1.06 percent, to 1,779 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $55 at $13,285.

The panamax index was down 73 points, or 5.79 percent — its biggest percentage decline since Dec. 21 last year — at 1,187 points, its lowest level in over a month. The index has fallen about 21 percent for the week.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $584 to $9,541.

Among smaller vessels, the supramax index fell nine points to 861 points, while the handysize index fell 10 points to 559 points.