Weaker vessels rates extends Baltic Index losing streak

The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, dropped for a fifth straight session on Tuesday due to weaker vessel rates.

The overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels, finished 12 points, or 0.78 percent, lower at 1,522 points.

The panamax index fell for an eighth straight session, closing down 6 points, or 0.4 percent, at 1,492 points.

Average daily earnings for panamaxes, which typically carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, dropped $56 to $12,003.

“With both (Pacific and Atlantic) basins looked to be characterized by an eerie quiet, rates started to loose ground,” Allied Shipbroking said in a client note.

“Things looked to be mostly hit by the slower flow of cargoes out of U.S. Gulf Coast, pushing tonnage to more aggressively stick to the Pacific trade, causing a drop in rates there too.”

The capesize index ended up 2 points at 3,219.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell $62 to $22,060.

Among indexes tracking rates for smaller vessels, the supramax index fell 21 points to close at 1,060 points. The handysize index shed 6 points to finish at 679 points.