Weaker demand for vessels drag Baltic index to one-year low
The Baltic Exchange’s dry bulk sea freight index fell to its lowest level in a year on Wednesday, pressured by lower rates across all vessel segments
The overall index, which factors in rates for capesize, panamax and supramax vessels, slipped 47 points, or 3.5%, to 1,296, its lowest since mid-January 2021.
The capesize index dropped 43 points, or 5.8%, to 702, its lowest since June 2020.
Average daily earnings for capesizes, which transport 150,000-tonne cargoes such as iron ore and coal, fell by $354 to $5,826.
Iron ore futures in top steel producer China jumped over 3% on Wednesday, underpinned by concerns over supply as traders digested reports of lower import arrivals and shipments departing Australia and Brazil.
Australia accounts for about 60% of iron ore shipments to China, while Brazil is the second-biggest supplier with a share of about 20%.
The panamax index fell 74 points, or 3.7%, to 1,914, its lowest since April.
Average daily earnings for panamaxes, which ferry 60,000-70,000 tonne coal or grain cargoes, fell by $666 to $17,224.
The supramax index dipped 39 points to its lowest level since end-February 2021 at 1,654.
Source: Reuters (Reporting by Brijesh Patel in Bengaluru; Editing by Krishna Chandra Eluri)