Baltic Index Falls on Weak Capesize, Supramax Demand
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, snapped a four-session winning streak on Tuesday, pressured by lower rates for capesize and supramax vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 53 points, or 3.4%, at 1,507 — its biggest dip in two weeks.
The capesize index fell 130 points, or 6.4%, to 1,911.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased $1,079 to $15,849.
Iron ore futures wobbled, initially extending losses on concerns about weak steel demand in China, before reversing direction as a tropical storm headed towards Port Hedland in top supplier Australia.
Among smaller vessels, the supramax index lost 30 points, or 2.6%, at 1,131.
The panamax index added 1 point at 1,852, its highest level since Oct. 27
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $8 to $16,669.
(Reuters - Reporting by Ananya Bajpai; Editing by Shilpi Majumdar)