Softer Capesize Demand Drags Down Baltic Index

August 6, 2019

file Image: AdobeStock / © Lucasz Z
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

Logistics News

Ferry Vessel Operator Upgrades Digital Experience

Ferry Vessel Operator Upgrades Digital Experience

Wind-Assisted LNG Carrier Concept Gets BV AiP

Companies Scramble to Secure Ships to Transfer Venezuelan oil

Companies Scramble to Secure Ships to Transfer Venezuelan oil

Russian Drone Hits Two Foreign-Flagged Vessels Near Odesa

Russian Drone Hits Two Foreign-Flagged Vessels Near Odesa

Subscribe for Maritime Logistics Professional E‑News

Uber's safety record is put under scrutiny by a sexual assault trial that took place in Arizona
The Finnish police have released a ship linked to Russia that was held in a cable sabotage investigation
Iveco and PlusAI expand their partnership with autonomous truck testing in Spain