Baltic index snaps 4-day winning streak as capesize rates drop
The Baltic Exchange’s dry bulk sea freight index snapped its four-session winning streak on Tuesday, as capesize rates slipped.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 20 points, or about 1.5%, to 1,327, a day after hitting a more than two-week high.
The capesize index (.BACI) lost 80 points, or 4.8%, to 1,589.
Average daily earnings for capesizes (.BATCA), which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore, decreased $668 to $13,177.
The panamax index (.BPNI) was up 28 points, or about 1.9%, to 1,524, its biggest daily percentage gain since Oct. 18.
Average daily earnings for panamaxes (.BPWT), which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased $250 to $13,718.
“The overall bearish mood has seemingly taken hold of Asian markets, nourished by the general uninspiring relative demand levels that are being noted for this time of the year,” shipbroker Allied said in its weekly note, referring to the panamax segment.
The supramax index (.BSIS) edged 3 points lower to 1,177.
Meanwhile, iron ore futures climbed on Tuesday, with the Dalian benchmark hitting its highest in 23 weeks, propped up by top steel producer China’s moves to ramp up support for struggling property developers.