Baltic Dry Bulk Index Sees Worst Week in Nearly Five Months

June 2, 2023

The Baltic exchange's main sea freight index extended losses for the 16th straight session on Friday and were on track for its biggest weekly decline since early January.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 18 points, or 1.9%, to its lowest in more than three months at 919.

©Volodymyr Kyrylyuk/AdobeStock
©Volodymyr Kyrylyuk/AdobeStock

The main index was down 21.6% for the week - its lowest since the week ending Jan. 6. 

The capesize index lost 28 points or 2.5% to 1,116. The index slumped over 33% for the week, posting its biggest weekly percentage fall since Feb. 17.  

Analysts have pointed that lower coal imports to Europe and slow economic recovery in China are the main factors weighing on the Baltic index.  

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $233 to $9,254.

The panamax index was unchanged from 1,030 points from the previous session- its lowest since Feb. 22. It was down for the eighth straight week.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $1 to $9,269.

Among smaller vessels, the supramax index lost 28 points, or about 3.3%, at 819, to hit its lowest since late February. It was down 13.4% for the week.

(Reuters - Reporting by Arshreet Singh in Bengaluru; Editing by Shweta Agarwal)

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