Baltic Dry Index Falls on Muted Demand for Capesize Vessels

October 23, 2023

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for a third straight session on Monday, pressured by weaker rates in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 29 points, or 1.4%, to 2,017, its lowest in a week.

© cloudvisual / Adobe Stock
© cloudvisual / Adobe Stock

The capesize index lost 83 points, or 2.3%, at 3,473.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell by $688 to $28,805.

Dalian iron ore futures fell, dragged by persistent concerns about China's property sector crisis and signs of weakening demand from Chinese steel mills.

The panamax index remained steady at 1,638.

Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, gained $8 to $14,746.

Among smaller vessels, the supramax index dropped 8 points, or 0.6%, to 1,279.

Agricultural producers in Ukraine say a new Black Sea corridor could enable exports of up to 2.5 million metric tons of food a month, almost offsetting the impact of Russia's decision to quit a U.N.-brokered deal to allow grain shipments through the region.


(Reuters - Reporting by Tina Parate; Editing by Shilpi Majumdar)

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