Baltic index snaps 6-day losing streak on higher capesize rates
The Baltic Exchange’s main sea freight index on Friday rose for the first time in seven sessions, helped by an uptick in capesize rates.
The Baltic index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, rose 29 points, or 2.3%, to 1,284 points.
For the week, however, the index recorded its sixth straight fall, declining by 5.4%.
The capesize index rose 92 points, or 3.8%, to 2,493, but still shed 5.4% in the week, its fifth fall in six weeks.
“Lower iron ore imports in November and December might put the freight rates (capesize rates) under even greater pressure,” Peter Sand, chief shipping analyst at BIMCO, said in a note.
A slowdown in Chinese iron ore imports, which have fallen by 1.6% in accumulated volumes year-on-year in the first 10 months of this year, will hurt the capesize segment, Sand added.
Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, rose $580 to $18,930.
The panamax index remained unchanged at 1,129 points, but registered its first weekly gain after five weeks, rising by about 1%.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, edged $2 higher to $9,068.
The supramax index rose 16 points to 747.
Source: Reuters (Reporting by Nakul Iyer in Bengaluru; Editing by Maju Samuel)