Weak Iron-Ore Demand Weighs on Baltic Index

July 31, 2019

AdobeStock / © Lucasz Z
AdobeStock / © Lucasz Z

The Baltic Exchange's main sea freight index fell for a seventh straight session on Wednesday, as demand for shipping iron-ore fell in the Atlantic.

The Baltic index, which tracks rates for ships ferrying dry bulk commodities, fell 1.6%, or 31 points, to 1,868 points. The index has still more than tripled since February, mainly driven by strong demand for vessels that ship iron ore from Brazil into China.

"A step back was witnessed during this past week in freight levels, as activity seems to have slowed down on the key Brazil – China route," Allied Shipbroking said in a note. "In the Pacific, demand also plummeted these past few days, with less interest being seen amongst charters to fixing any stems."

The capesize index fell 7 points, or 0.2%, to 3,657 points. Average daily earnings for capesizes, which typically transport 170,000 tonne-180,000 tonne cargoes such as iron ore and coal, fell $235 to $26,952.

The panamax index fell 78 points, or nearly 4%, to 1,891 points. The index was down for the sixth straight session. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $623 to $15,129.

"With the transatlantic route losing steam, the whole freight market for this segment softened this past week. Adding to this bearish environment, limited fresh enquiries were to be seen in South America, a region that had previously supported rates," Allied said.

The supramax index fell 6 points to 982 points.

Reporting by Nallur Sethuraman

Logistics News

US State Department Expresses Concern Over Ban of Israeli Shipments in Spanish Ports, Airspace

US State Department Expresses Concern Over Ban of Israeli Shipments in Spanish Ports, Airspace

ABS AIP for Electric Propulsion Container Ship

ABS AIP for Electric Propulsion Container Ship

US Container Imports Rise in August

US Container Imports Rise in August

Stena Bulk Appoints Seasystems as Exclusive Global Partner for Jettyless LNG Technology

Stena Bulk Appoints Seasystems as Exclusive Global Partner for Jettyless LNG Technology

Subscribe for Maritime Logistics Professional E‑News

German Minister: Russian drone incursion in Poland is considered deliberate
Sources say BlackRock-led group is in negotiations to raise $10.3 billion for Aramco.
US ends electric vehicle carpool program