Capesize Rates Drag Baltic Dry Index Down Further
Aug 24 (Reuters) – The Baltic Exchange’s main sea freight index fell on Wednesday, as rates for the capesize vessel segment dropped to their lowest level in over two years.
* The overall index, which factors in rates for capesize, panamax and supramaxshipping vessels, fell 58 points, or about 4.6%, to 1,213 points, hitting its lowest since December 2020.
* The capesize index fell to an over two-year low, sliding 117 points, or about 14.7%, to 680 points.
* Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $972 at $5,636.
* Meanwhile, China’s iron ore prices gained more ground, with the market jumping to a one-week high on prospects of strong Chinese demand ahead of the peak construction season.
* The panamax index continued its month-long decline, losing 81 points to 1,491 points. The index shed 5.2%, its worst day in more than seven months.
* Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $727 to $13,422.
* The sentiment across the Atlantic and Transatlantic market was “weak for the Panamax market, with a widening tonnage list against limited injection of fresh cargoes,” ship broker Intermodal wrote in a weekly note dated Tuesday.
* Ukraine’s 2022 grain harvest could decrease to between 52.5 million tonnes and 55.4 million tonnes from a record 86 million tonnes due to the Russian invasion which has cut the harvested area, analyst APK-Inform said.
* The supramax index .BSIS rose for a ninth consecutive session, gaining 8 points to 1,773 points.
(Reporting by Harshit Verma in Bengaluru; Editing by Krishna Chandra Eluri)(c) Copyright Thomson Reuters 2022.
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