Slower Demand for Larger Vessels Drags Baltic Index Lower
The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Thursday due to diminishing demand for larger vessels.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell 10 points, or 1.53 percent to 642 points.
The capesize index fell 39 points, or 4.09 percent to 915 points.
Freight rates for large capesize dry cargo ships on key Asian routes are set to drift lower next week unless there is an uptick in chartering activity from major miners, ship brokers said on Thursday.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $243 to $7,175.
The panamax index was down 14 points or 2.25 percent at 607 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $113 to $4,850 on Thursday.
Among smaller vessels, the handysize index remained flat at 365 points, while the supramax index fell one point to 582 points.
(Reporting by Nithin Prasad in Bengaluru)
