Baltic Index Falls on Weaker Panamax, Capesize Rates
The Baltic Exchange's main sea freight index fell on Wednesday, as weaker demand for panamax and capesize vessels weighed.
The index, which factors in rates for capesize, panamax, and supramax shipping vessels carrying dry bulk commodities, fell 12 points, or 0.4%, to 3,154.
The capesize index lost 3 points to 3,841, its lowest since July 22.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of iron ore, inched $24 lower to $31,856.
Shanghai steel futures fell for a second straight session on Wednesday as concerns over slowing Chinese demand for the construction and manufacturing material eclipsed moves to reduce its production.
"In the coming months, we expect iron ore trade from Brazil to China to ramp and global coal inventory levels to be restocked, resulting in capesize rates remaining very strong," Jefferies' said in a research note on Tuesday.
The panamax index dropped 63 points, or 2%, to 3,404, its lowest since June 15.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, lost $570 to end up at $30,634.
The supramax index climbed 18 points to 2,911.
(Reporting by Seher Dareen in Bengaluru; editing by Uttaresh.V)