Weak demand drags Baltic index down for 12th day
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for the 12th consecutive session on Friday, weighed down by lower capesize and panamax rates.
The Baltic index, which reflects rates for capesize, panamax and supramax vessels, slipped 61 points, or 2.8%, to 2,131 points.
The capesize index plunged 184 points, or 4.4%, to 3,952 points. The index slipped more than 9% this week, marking its worst week in nearly two-months.
Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, declined by $1,301 to $30,169.
China’s iron ore futures fell more than 3% in early trade on Friday and were headed for their biggest weekly drop since mid-August, dragged down by growing worries about demand prospects for the steelmaking raw material.
The panamax index fell 39 points, or 1.9%, to 2013 points.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, dropped $315 to $16,109.
The supramax index rose by 4 points to 1300 points.
Source: Reuters (Reporting by Anjishnu Mondal in Bengaluru)