Baltic index snaps 4-day winning streak as capesize rates slip
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, snapped its four session-long winning streak on Thursday, pressured by lower rates for capesize vessel segment.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, shed 36 points, or about 2.1%, to 1,716, sliding below an 11-month high touched on Wednesday.
The capesize index .BACI slipped from its over four-and -a-half month peak by 83 points, or 3.2% to 2,493. It was also its biggest single-day drop in over three weeks.
Meanwhile, iron ore futures gained, aided by higher hot metal output data, but traders opted to be cautious ahead of the forthcoming holiday break in top consumer China, which begins on Sept. 29.
Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased $689 to $20,675.
The panamax index edged down 2 points to 1,709.
Average daily earnings for panamax vessels, which usually carry about 60,000 to 70,000 tonnes of coal or grain cargo, declined $15 to $15,384.
“The Panamax market remains robust with firming rates in the Atlantic despite recent highs and a mild increase in South ex East Coast South America rates,” shipbroker Fearnleys wrote in a weekly note, referring to the panamax segment.
Among smaller vessels, the supramax index was down 24 points, or 1.8%, to 1,294.
Ukraine’s move to create a shipping channel for grain exports is a positive step for global food security, although efforts continue to reach a new agreement over a broader Black Sea corridor, a top U.N. trade official said.
Source: Reuters (Reporting by Daksh Grover in Bengaluru; Editing by Shinjini Ganguli)