Baltic index falls as capesizes retreat to 2-week low

The Baltic exchange’s main sea freight index fell on Wednesday as capesize rates dipped to a two-week low.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell 115 points, or 3.5%, to 3,139, the lowest since April 30.

The capesize index fell 359 points, or 7.08%, to 4,709, its lowest since April 28.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, decreased by $2,976 to $39,055.

China’s southern area is about to enter a rainy season that could potentially dampen demand for construction materials, despite a red-hot market for steel products in the past few months.

The panamax index fell 15 points, or 0.5%, to 3,067.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, decreased by $134 to $27,606.

The supramax index was up 24 points at 2,269.
Source: Reuters (Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)