Baltic index hits lowest in 2-1/2 months on lower demand for smaller vessels
The Baltic Exchange’s dry bulk sea freight index on Monday dropped to its lowest in more than two months as demand reduced for panamax and supramax vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities was down 12 points, or about 1%, to 1,177, its lowest since Sept. 8.
The panamax index (.BPNI) fell 45 points, or 2.8%, to a more than 10-week low of 1,549.
Average daily earnings for panamax vessels (.BPWT), which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $406 to $13,937.
The supramax index (.BSIS) dropped to its lowest in more than a year and lost 6 points to 1,164.
Iron ore futures slipped as fresh COVID-19 flare-ups in the world’s top steelmaker China dented demand outlook, while expectations of rising supplies after India’s decision to scrap export taxes on low-grade iron ore also weighed on sentiment.
The capesize index (.BACI) snapped a six-day losing streak and added 7 points, or 0.6%, to 1,129.
Average daily earnings for capesizes (.BATCA), which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, increased $58 to $9,363.