Baltic index hits one-month low as capesize rates slide

The Baltic Exchange’s main sea freight index, which tracks rates for ships ferrying dry bulk commodities, fell for the third straight session to a one-month low on Wednesday as capesize rates declined.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 52 points, or 2.7%, to 1,890, its lowest level since June 12.

The capesize index fell 159 points, or 5%, to 2,940, marking its lowest in nearly a month. The index also dipped for the third consecutive session.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $1,323 at $24,379.

The panamax index was unchanged at 1,713.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, decreased $5 to $15,415.

Among smaller vessels, the supramax index gained 4 points, or 0.3%, to 1,370.

Russia shipped its first grain from a new terminal at the Baltic Sea port of Ust-Luga, the Russian agricultural watchdog told Reuters, as the country seeks to diversify its grain export routes.

Meanwhile, Denmark’s A.P. Moller-Maersk said disruption to its container shipping via the Red Sea had extended beyond trade routes between the Far East and Europe to its entire global network.
Source: Reuters (Reporting by Anushree Mukherjee in Bengaluru; Editing by Shreya Biswas)