Baltic index extends losses to seventh session
The Baltic Exchange’s main sea freight index posted a loss on Tuesday for the seventh straight session, its longest losing streak in about four months, pressured by lower rates across vessel segments.
The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, lost 55 points, or 2.9%, to 1,817 points.
The capesize index dropped 91 points, or 4.4%, to 1,971 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $753 to $16,374.
“With many routes indicating sluggish signs in terms of activity taking place, it will most probably take some time before any reversal to this trend takes place,” George Lazaridis, head of research and valuations for Allied Shipping.
However, Dalian and Singapore iron ore futures rose in a volatile session on Tuesday, as traders focused on improving steel margins in top steel producer China, while weighing prospects of further output cuts.
The panamax index was down 18 points to 2,026 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $157 to $18,235.
Among smaller vessels, the supramax index fell 62 points to 1,866 points.
Source: Reuters (Reporting by Arundhati Sarkar in Bengaluru; Editing by Shinjini Ganguli)