Baltic Index Falls As Chinese Holiday Saps Demand For Bigger Vessels

Sept 30 (Reuters) – The Baltic Exchange’s main sea freight index, which gauges the cost of shipping commodities such as iron ore, cement, grain and coal, fell on Monday on lower demand for bigger vessels.

The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 43 points or 2.1 percent to 2,003 points.

The Baltic’s capesize index slipped 114 points or 2.87 percent to 3,853 points.

Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were down $1,598 or 4.2 percent to $36,425.

“There is a sense that freight rates will remain well supported in the coming weeks although holidays in Asia for all of this coming week are expected to limit overall fixture activity,” Omar Nokta, senior analyst at GHS Research said, referring to markets in China being closed for a week from Tuesday for Golden Week celebrations.

“This week’s holidays likely brought forward some capesize fixture demand last week, leaving this week to be somewhat quieter,” he said.

The Baltic’s panamax index lost 5 points or 0.28 percent at 1,795. * Average daily earnings for panamaxes, which usually transport 60,000 to 70,000 tonne cargoes of coal or grains, were down $48 at $14,388. (Reporting by Shruti Chaturvedi in Bangalore; Editing by Louise Ireland)

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