Baltic Index Heads for Weekly Loss on Lower Capesize Rates

The Baltic Exchange’s dry bulk maritime freight index, which tracks rates for vessels transporting dry bulk commodities, extended its decline on Friday and was headed for a weekly decline, pressured by a drop in capesize vessel rates.

The main index, which takes into account capesize, panamax and supramax cruise ship rates, fell 66 points, or 3.2%, to 1,991 points. The index recorded a loss of 3.8% for the week.

The capesize index lost 188 points, or 6.2%, to 2,871 points, hitting a three-week low. The index fell about 8% for the week.

Average daily earnings for large vessels, which typically carry 150,000 tonnes of cargo such as iron ore and coal, fell by $1,556 to $28,811.

Iron ore futures fell on Friday, snapping a three-session winning streak, as demand in top consumer China weakened, hit by shrinking steel margins.

The Panamax index was unchanged at 1,924 points, and posted a gain of 5.3% for the week.

Average daily earnings for Panamax vessels, which typically carry 60,000-70,000 tonnes of coal or grain, fell $1 to $17,318.

Among small ships, the supramax index lost 9 points to 1,369 points. The index fell 3.9% for the week.
Source: Reuters