Baltic index hits over three-month low as rates for all segments drop

The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, dropped to a more than three-month low on Thursday, dragged down by weakness across all vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, lost 40 points, or 2.3%, to 1,668, hitting its lowest level since April 10.

The capesize index fell 88 points, or 3.7%, to 2,289, dropping for the tenth straight session.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes, such as iron ore and coal, were down $726 at $18,986.

Iron ore futures prices rose to a more than one-week high, buoyed by top producer Rio Tinto’s optimistic demand outlook for top consumer China and continued hopes of more stimulus from the world’s second-largest economy.

The panamax index lost 26 points, or 1.5%, to 1,713, hitting a more than one-week low.

Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, decreased $231 to $15,418.

Among smaller vessels, the supramax index was down 11 points, or 0.8%, to 1,352.
Source: Reuters (Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Vijay Kishore)