Jan 8 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying industrial commodities, continued its run of record lows on Friday, haunted by reduced China imports.
Demand woes across all vessel segments continued to haunt the index, which registered a record low for a fourth session running.
The overall index, gauging the cost of shipping dry bulk cargoes including iron ore, cement, grain, coal and fertiliser, fell 3.6 percent to 429 points.
The downturn in dry bulk shipping has worsened significantly in recent months as demand for iron ore and coal has declined in the face of slower economic growth in China.
“The first part of the year is typically the weakest point for dry bulk freight rates, which have been even weaker considering the low base at which they ended 2015,” Clarkson Capital Markets’ Omar Nokta said in a note.
The capesize index was down more than 14 percent at 343 points, with average daily earnings dropping by $380 to $3,818. Capesize vessels typically transport 150,000-tonne cargoes such as iron ore and coal.
Chinese iron ore futures slumped by more than 2 percent to their lowest in more than a week in the expectation that cuts to steel production in the world’s top producer will dent demand for the raw material.
The panamax index fell 16 points, or 3.56 percent, to 434 points.
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased by $129 to $3,466.
(Reporting by Vijaykumar Vedala in Bengaluru; Editing by David Goodman)
(c) Copyright Thomson Reuters 2016.
Sign up for gCaptain’s newsletter and never miss an update
Essential maritime and offshore news, insights, and updates delivered daily straight to your inbox
Baltic grain exporters are seeing a boost in demand as blocked supplies from the Black Sea region are spurring buyers to seek alternative sources.
Twenty-two seafarers remain missing after the Panama-flagged bulk carrier Ocean Winner sank in the Bay of Bengal, triggering a major search and rescue operation involving the Indian Coast Guard and passing merchant...
The long-term safety record for bulk carriers continues to improve, but the industry faces an increasingly complex risk environment that extends beyond traditional operational hazards, according to INTERCARGO’s latest casualty...
Subscribe to gCaptain Daily and stay informed with the latest global maritime and offshore news
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
