Dry Bulk: Capesize Rates Hit 6-month Low
The Baltic Exchange's main sea freight index fell for the third straight session on Monday as rates for capesize vessels declined to their lowest in more than six months.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, lost 73 points, or 4.9%, to 1,404 points, its lowest since Jan. 28.
The capesize index was down for the third consecutive session, falling 216 points, or 16.4%, to 1,098 points, its biggest drop in 11 days.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,794 to $9,104.
Meanwhile, China's daily coal output in July surged 16% from a year earlier following Beijing's call for miners to ensure sufficient supply during the peak summer demand season.
However, China's central bank cut key lending rates in a surprise move to revive demand as data showed the economy unexpectedly slowing in July, with factory and retail activity squeezed by Beijing's zero-COVID policy and a property crisis.
The panamax index was down for the 15th straight session, shedding 22 points, or 1.2%, at a four-week low of 1,885 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $194 to $16,967.
Ukraine's grain exports are down 46% year on year at 2.65 million tonnes so far in the 2022/23 season, the agriculture ministry said. Read full story
The supramax index rose for a second session, adding 14 points at 1,607 points on its best day since July 20.
(Reuters - Reporting by Harshit Verma and Deep Vakil; Editing by Shinjini Ganguli)