Baltic Dry Index Slides to Lowest Level since 1986

Capesize File Photo

Feb 2 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, continued its slide on Monday, hitting a new near-three decade low as rates for all four vessel segments fell.

The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was down 18 points, or 2.96 percent, at 590 points, the lowest since August 1986.

“The dry bulk market has seemingly gone dead silent, with worries circulating amongst many owners that there is little reason to operate vessels under the currently prevailing freight rates,” George Lazaridis, head of market research and asset valuations at Allied Shipbroking, said in an weekly shipping market note published on Monday.

The capesize index shed 14 points, or about 2.06 percent, to 665 points.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes such as iron ore and coal, declined $103 to $6,604.

The panamax index was down 28 points or 5.51 percent at 480 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slid $230 to $3,830. Both are at their lowest in seven months.

The supramax index was down 18 points at 567 points, while the handysize index slipped 8 points to 332 points. (Reporting by Anupam Chatterjee in Bangalore, editing by David Evans)