Weak Capesize Rates Depress Baltic Index

Maritime Activity Reports, Inc.

October 6, 2015

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Tuesday on weak demand for capesize vessels.

The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, dropped 12 points, or 1.36 percent, to 869 points.

The capesize index fell 41 points, or 2.16 percent, to 1,860 points.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $298 to $13,213.

Last week started off on a bad note for capsize vessels with rates showing a softening trend, and while towards the end of the week it looked as if rates had stabilized at the new levels, it now seems further drops are in sight, shipping brokerage Allied Shipbroking Inc said in a note on Monday.

"There is still a lack of fresh interest while it was the Atlantic that was showing the strongest drops in freight rates," the note added.

The panamax index was up 1 point, or 0.14 percent, after falling for nine straight sessions, to 700 points.

Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grain, rose $1 to$5,607.

Among smaller vessels, the handysize index dropped 4 points to 386 points and the supramax index fell 7 points to 681 points.

 

(Reporting by Apeksha Nair in Bengaluru)

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