Baltic Dry Index Snaps 15-session Winning Run

May 6, 2021

© Peter / Adobe Stock
© Peter / Adobe Stock

The Baltic exchange's main sea freight index dropped from an 11-year peak on Thursday, breaking its 15-session winning steak, weighed down by lower rates for the larger capesize segment.

The Baltic dry index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell 54 points, or 1.7%, to 3,212.

The index rose for the previous 15 sessions, its longest gaining streak since the 27-session winning run that ended in early July last year.

The capesize index fell 237 points, or nearly 4.4%, to 5,167, having jumped to an over 11-year high on Wednesday.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, reduced by $1,965 at $42,852.

"Considerable congestion in certain key ports, quarantine restrictions, ongoing crewing problems and most recently a very serious India situation together add further fuel to the fire as fleet efficiency is reduced," ship broker Fearnleys wrote in a weekly note.

Asia's iron ore benchmarks rose after China "indefinitely" suspended all activity under a China-Australia Strategic Economic Dialogue, in the latest setback to the strained relations between Beijing and Canberra.

The panamax index rose 61 points, or 2.1%, to 2,909.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,00 tonnes, rose $548 to $26,182.

The supramax index was up 25 points at 2,160.


(Reporting by Seher Dareen; Editing by Maju Samuel)

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