Weaker Capesize Rates Push Baltic Dry Index Lower
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, dropped to snap a seven-session winning streak on Monday, weighed down by lower capesize rates.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 3 points, or 0.2%, to 1,817.
The capesize index lost 56 points, or 2%, to 2,707.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, fell $466 to $22,447.
Iron ore futures rebounded as risk-off sentiment hurt by Chinese intervention last week eased, while low inventories amid rising stockpiling needs, improving steel margins and concerns over supply disruptions helped the market.
The panamax index added 41 points, or 2.2%, to 1,915.
Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, was up $367 at $17,235.
Among smaller vessels, the supramax index added 12 points, or 1%, to 1,217, its highest since Oct. 26.
(Reuters - Reporting by Hissay Ongmu Bhutia; Editing by Shweta Agarwal)