Baltic Index Snaps 11-session Rally as Rates for Larger Vessels Edge Lower
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, snapped its 11-session winning streak on Thursday as rates for capesize and panamax vessels edged lower.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 15 points to 1,569.
The capesize index shed 60 points, or 2.9%, to 2,007, its worst day since Sept. 5.
Average daily earnings for capesize vessels, which typically transports 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased $499 to $16,646.
Prices for iron ore, steel, and steelmaking materials fell in China as risk sentiment weakened following the announcement by the U.S. Federal Reserve of another rate hike by the end of the year and tighter monetary policy through 2024.
The panamax index edged down by 11 points to 1,696.
Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, fell $96 to $15,265.
"The current outlook remains cautiously optimistic, anchored by sustained activity in the Atlantic and steady demands in late September and early October," shipbroker Fearnleys wrote in a weekly note, referring to the panamax segment.
Among smaller vessels, the supramax index, added 26 points, or 2.0%, to 1,350.
An explosion, possibly caused by an underwater mine, on a cargo ship near a Romanian Danube port brings to attention threats to Black Sea trade.
(Reuters - Reporting by Daksh Grover in Bengaluru)