Baltic Index Snaps 9-day Winning Streak on Weaker Capesize Rates

Maritime Activity Reports, Inc.

February 28, 2017

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, tumbled on Tuesday, snapping a nine-session winning streak, as capesize vessel rates dropped.

The index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, ended down 19 points, or 2.16 percent – it's biggest one-day percentage fall in three weeks – at 859 points.

The capesize index closed down 130 points, or 11.29 percent, at 1,021 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $1,106 to $8,027.

"Capesize rates remain under pressure, with rates dropping ... on the back of a meaningful drop off in activity in the Pacific markets," Clarksons Platou analysts said in a note.

The panamax index finished up 29 points, or 3 percent, at 995 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $236 to $7,996.

Among smaller vessels, the supramax index and handysize index rose eight points each to end at 825 points and 444 points, respectively.
 
(Reporting by Swati Verma in Bengaluru)
 
 
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