Baltic index falls for fourth straight day on weaker capesize rates

The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the fourth consecu-tive session on Tuesday, following a retreat in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down by 68 points or 3.4%, to 1,949.

The capesize index fell 197 points or 5.7%, at 3,276 – lowest since October 5.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, lost $1,636 to $27,169.

Iron ore futures climbed more than 3%, as Beijing was seen preparing an additional sovereign debt issuance as part of efforts to spur economic growth, while worries persisted about a deepening crisis in China’s property sector.

The panamax index climbed 10 points or 0.6%, to 1,648, its highest in three weeks.

Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargoes, gained $85 to $14,831.

Among smaller vessels, the supramax index ticked 13 points, or 1% lower, to touch 1,266.

About 700,000 metric tons of grain have been exported through Ukraine’s new Black Sea export corridor since it began operating in August, the Ukrainian agriculture minister said.
Source: Reuters (Reporting by Tina Parate in Bengaluru; Editing by Tasim Zahid)