Baltic Dry Index Snaps 11-Session Rally
Aug 25 (Reuters) – The Baltic Exchange’s main dry bulk sea freight index fell on Wednesday, halting a 11-session rally that saw it scale its highest level in over a decade, as the larger capesize vessel segment retreated.
* The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, fell 8 points to 4,193.
* The main index hit its highest level since mid-2010 on Monday, in a rally that analysts attributed to an overall rebound in commodities demand and global shipping constrains.
* But potentially easing some of the logjams that had exacerbated an already strained global supply chain, the Meishan terminal at China’s Ningbo port resumed operations on Wednesday following a two-week long shutdown due to a COVID-19 case.
* The capesize index fell 1.6%, or 97 points, to 6,109, snapping a 10-session long rally.
* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, declined $810 to $50,662.
* Shipbroker Intermodal said in a weekly note dated Aug. 24 that the capesizes segment could find a higher peak during the second half of the year, attributing the strong gains in the previous week to record high congestion at Chinese ports, among other things.
* Meanwhile, Dalian iron ore rose in a choppy session underlining fragile sentiment as improved supply prospects could pressure prices that have collapsed due to weak Chinese demand.
* The panamax index rose 39 points to its highest in six weeks at 3,885.
* Average daily earnings for panamaxes, which usually carry 60,000-70,000 tonne coal or grain cargoes, increased $354 to $34,969.
* Among smaller vessels, the supramax index added 43 points at 3,386, an all-time high, as per Refinitiv Eikon data available since 2017. (Reporting by Rahul Paswan in Bengaluru; Editing by Amy Caren Daniel)(c) Copyright Thomson Reuters 2021.
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