The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for a third straight day on Tuesday, pressured by lower demand across larger vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 36 points, or 3.4%, to 1,037, its lowest in a week.

The capesize index went down by 85 points, or 5.3%, to its lowest level since July 7, at 1,529.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased by $710 to $12,676.

“A weaker Chinese industrial backdrop is the key overhang with soft steel prices and low steel mill profitability impacting vessel demand,” brokerage Jefferies wrote in a note dated Tuesday.

But Dalian and Singapore iron ore futures ticked higher on Tuesday, boosted by heightened expectations of more supportive measures from China following weaker economic data.

The panamax index shed 32 points or 3% – its biggest percentage decline since May 31 – to 1,052.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slipped by $286 to $9,470.

Among smaller vessels, the supramax index edged up by 3 points to 746.

Source: Reuters