Higher Rates for Smaller Vessels Lift Baltic Dry Index

The Baltic Exchange's main sea freight index rose on Thursday as an uptick in rates for smaller panamax and supramax vessels offset weakness in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was up 5 points, or 0.24%, at 2,118 points, snapping two sessions of losses.

The capesize index fell for the third straight session, losing 66 points, or 2.4%, to 2,653 points.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down by $553 at $21,999.

Dalian and Singapore iron ore futures dropped as investors shifted their focus back to gloomy China demand outlook after a short-lived boost from the latest government rhetoric on economic stimulus.

The panamax index was up 79 points, or 4%, at a nine-day high of 2,051 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $709 to $18,455.

German national railways Deutsche Bahn said it plans to start freight train services to carry Ukrainian grain exports to German ports for loading on ships.

However, the International Grains Council trimmed its forecast for 2022/23 global corn output, largely driven by drought stress in the European Union.

The supramax index rose by 16 points to 2,073 points, its highest since July 13.

(Reuters - Reporting by Deep Vakil; Editing by Aditya Soni)