Baltic Index Hits Over 1-month Low as Vessel Demand Falters
The Baltic Exchange's dry bulk sea freight index extended its decline to hit an over one-month low on Wednesday, weighed by weaker demand across vessel segments.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels carrying dry bulk commodities, lost 74 points, or 5.9%, to 1,176, a day after posting its biggest daily percentage loss in decades.
The capesize index dropped 119 points, or 7.3%, to 1,516, its lowest in more than four weeks.
Average daily earnings for capesizes , which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, decreased $986 to $12,575.
Iron ore futures slipped in volatile trade on Wednesday, as COVID-19 disruptions and lingering concerns over weak real estate market in China outweighed optimism around the country's reopening and economic stimulus measures.
The panamax index fell 60 points, or about 4.2%, to 1,378, its lowest since Sept. 5.
Average daily earnings for panamaxes , which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $544 to $12,400.
The supramax index shed 56 points to $912, its lowest in more than two years.
(Reuters - Reporting by Ananya Bajpai in Bengaluru; Editing by Shilpi Majumdar)