Baltic index logs worst weekly fall in over 3-month
The Baltic Exchange’s main sea freight index fell for a seventh straight session on Friday, on course to record its worst week in more than three months, weighed down by declining rates across larger vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 18 points, or 1.3%, to 1,384 points – its lowest since April 19.
The main index was down 11.2%, its worst since the week ending Jan. 27.
The capesize index dipped 37 points, or 1.7%, to over three-week low at 2,105 points.
This week the capesize index was down 14.3%, headed for its first weekly loss in five.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, decreased $308 to $17,459.
“The outlook for the next quarter remains positive despite the recent downward correction which I believe will lead to a stronger rebound during the third quarter of the year,” wrote Yiannis Parganas, head of Intermodal Research Department, in a mail to Reuters.
Meanwhile, Dalian iron ore futures closed lower weighed down by dismal demand outlook in top steel producer China, although prices posted a weekly gain on prospects of further stimulus for the economy.
The panamax index was down 13 points, or 1.1%, at 1,222 points and dropped 12.8% this week, its worst since the week ended on Jan. 13.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $111 to $11,001.
Among smaller vessels, the supramax index shed 8 points to 1,077 points.