Baltic index hits two-week low as rates for smaller vessels ease

The Baltic Exchange’s dry bulk sea freight index fell to a two-week low on Thursday, as weakness in rates for smaller vessels countered an uptick in the capesize segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 10 points, or 0.7%, at 1,388 points, its lowest since Jan. 18.

The capesize index added 33 points, or 1.8%, at 1,924 points.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $273 to $15,953.

U.S. thermal coal exporters earned more than $5 billion in 2023 as they shipped out more than 32.5 million metric tons of the high-polluting power fuel, data from ship-tracking firm Kpler shows.

The panamax index fell 69 points, or 4.4%, to a two-week low of 1,497 points.

Average daily earnings for panamax vessels, which usually carry about 60,000 tons to 70,000 tons of coal or grain cargo, were down by $622 at $13,471.

Thailand expects to export 7.5 million metric tons of rice in 2024, down 14.38% year-on-year, due to lower production and increased competition, the commerce ministry said.

Among smaller vessels, the supramax index was down 7 points at 1,048 points, its worst session in two weeks.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Mrigank Dhaniwala)