Capesize declines drag Baltic index to worst week in over 3 months
The Baltic exchange’s main sea freight index fell on Friday and registered its worst week in more than three months, weighed by a dip in the capesize segment.
The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell 138 points, or 4.5%, to 2,939, the lowest level since April 27.
Down 8%, the index registered its biggest weekly decline since the first week of February.
The capesize index dropped 384 points, or 8.4%, to 4,165, its lowest since April 22. The index has shed about 17% for the week, its worst since the week ended Feb. 12.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, decreased by $3,182 to $34,542.
Chinese ferrous futures extended losses on Friday, with steel prices plunging after top producer Tangshan warned mills to maintain market order, while iron ore gave up its weekly gain.
The panamax index fell 56 points, or 1.9%, to 2,961, notching up a third straight weekly gain.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, declined by $502 to $26,652.
The supramax index was up 14 points at 2,297.
Source: Reuters (Reporting by Eileen Soreng in Bengaluru; Editing by Amy Caren Daniel)