Weak Demand Across the Board Drives Down Baltic Dry Index

Sept 10 (Reuters) – The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell on Thursday for a third consecutive session due to a drop in vessel rates.

The overall index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 25 points to 830 points.

The capesize index fell 54 points, or 4.3 percent, to 1,202 points. Rates in the Pacific were under pressure mainly due to a lack of cargoes from Brazil, ship broker Fearnleys said in a weekly note on Wednesday.

Average daily earnings for capesize vessels, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $510 to $8,662.

The panamax index dropped 25 points, or 3.2 percent, to 751 points. “Few fresh requirements and more open tonnage (are) pushing rates down,” Fearnleys said.

Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grain, fell by $194 to $6,006.

The index for the relatively smaller handysize shed four points to 468 points, and the supramax index dropped 14 points to 824 points. (Reporting by Swati Verma in Bengaluru; Editing by Susan Fenton)

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