The Baltic Exchange's dry bulk sea freight index dropped to its lowest level in more than two years on Thursday, pressured by slowing demand for capesize and panamax vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 28 points, or 4.2%, to 640, its lowest since June 4, 2020.
The capesize index dropped 54 points, or about 10.8%, to its lowest in more than five months at 445.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, decreased $449 to $3,688.
Iron ore futures fell to a two-week low as traders reassessed demand prospects in key consumer China, despite expectations for more policy stimulus to support the country's economic rebound.
The panamax index lost 41 points, or about 4%, to 988, its lowest since June 16, 2020.
Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased by $368 to $8,894.
Among smaller vessels, the supramax index rose 4 points, or about 0.6%, to 684.
(Reuters - Reporting by Ananya Bajpai; Editing by Vinay Dwivedi)