rss icon Subscribe
desktop mobile

Softer Capesize Demand Drags Down Baltic Index

file Image: AdobeStock / © Lucasz Z

The Baltic Exchange's main sea freight index fell for an eleventh straight session on Tuesday to nearly one-month lows, pushed down by lower rates for capesize vessels due to sluggish demand in both Atlantic and Pacific regions.

The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 40 points, or 2.3%, to 1,734 points, lowest since July 8. The index has, still, nearly tripled since February, mainly driven by strong demand for vessels that ship iron ore from Brazil into China over the past few months. Activity, however, eased in the past couple of weeks, weighing on vessel rates, analysts said.

The capesize index fell 178 points, or 5.1%, to 3,302 points. Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, fell $994 to $24,625.

Dalian and Singapore iron ore futures extended their losses on Tuesday, while spot prices slipped into bear market territory, on downbeat demand outlook for the steelmaking ingredient in China and signs that the global supply crunch is easing. "All main routes are now on a downward trend with the overall market showing a rather sluggish mood for the time being," Allied shipping said in a research note.

The panamax index gained 6 points, or 0.3%, to 1,759 points. The index snapped a nine-day losing streak. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, rose $43 to $14,068.

The supramax index fell 3 points to 956 points.

Reporting by Nallur Sethuraman

Aug 6, 2019



Contrecoeur Port Expansion Deal Signed

Pic: Port of Montreal

The Canada Infrastructure Bank (CIB) announced that it will work with the Montreal Port Authority

MODEC Raises $1bln Bond for FPSO Project

PSO Cidade de Mangaratiba MV24. Image: MODEC

Japanese FPSO provider MODEC has decided to issue project bonds to international investors to

Maersk Q2 Beats Expectations Amid Trade War

Pic: Maersk

The world's biggest container shipping company AP Moller-Maersk delivers a 17% increase in

bulk shipping

Baltic Index in Third Weekly Fall, Despite Small Rebound

File Image: AdobeStock / © Lucasz Z

The Baltic Exchange's main sea freight index rose on Friday, buoyed by an uptick in demand across

Weak Iron-Ore Demand Weighs on Baltic Index

AdobeStock / © Lucasz Z

The Baltic Exchange's main sea freight index fell for a seventh straight session on Wednesday

Baltic Index Dips as Panamax Rates Slide

File Image: CREDIT AdobeStock / © Volodymyr Kyrylyuk

The Baltic Exchange's main sea freight index fell to a more than two-week low on Monday

Maritime Apps