Baltic Dry Index Hits Over 4-Month Low on Weak China Demand

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Nov 3 (Reuters) – The Baltic Exchange’s main sea freight index fell to a more than four-month low on Tuesday as weak demand from China dragged down vessel rates across all segments.

* The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels, was down 21 points, or 1.6%, at 1,263, its lowest since mid-June.

* The lack of demand from China has pulled out freight rates from a period of little movement seen in the third quarter and sent prices to multi-month lows, said Peter Sand, the chief shipping analyst at BIMCO.

* “It all hinges on demand from China,” he said, referring to the demand outlook for vessels.

* The capesize index fell 33 points, or 1.7%, to 1,862.

* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $270 to $15,445.

* Iron ore retreated after a five-day rally as port inventories of the steelmaking ingredient climbed to their highest since February.

* The panamax index was down 25 points, or 2%, at 1,250, hitting a three-month low.

* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $221 to $11,252.

* The supramax index eased 11 points to 932. (Reporting by Asha Sistla in Bengaluru; Editing by Ramakrishnan M., Aditya Soni)

(c) Copyright Thomson Reuters 2020.

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