Baltic index falls for sixth straight session on softer capesize rates

The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, extended its losing streak to a sixth straight session on Friday, dragged down by declining rates for capesize shipping vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 26 points, or 1.4%, to 1,808, hitting its lowest level in nearly two months. The index dropped 3.6% for the week.

The capesize index fell 82 points, or 3%, to 2,614, its lowest level since late May.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $687 at $21,676.

Dalian iron ore futures snapped a three-session slide on Friday, buoyed by fresh stimulus from top consumer China, but posted a weekly loss amid concerns about demand from the ailing property sector.

The panamax index was up 7 points, or 0.4%, to 1,792, marking its highest level in more than a month.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, increased $59 to $16,125.

Among smaller vessels, the supramax index was down 1 point, or 0.1%, to 1,386.

Three ships from Russia’s Baltic Fleet will arrive in Cuba on Saturday, official media said on Thursday, the second visit by Russian naval vessels since June.
Source: Reuters (Reporting by Anushree Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)