The Baltic Exchange’s main sea freight index declined on Wednesday, as lower rates for capesizes outweighed gains in smaller vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 13 points, or about 1.2%, to 1,094.
The capesize index declined 82 points, or 6.8%, to 1,123, its lowest level since June 2.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased $687 to $9,310.
“Within the capesize sector, there was a considerable reduction in earnings due to an excess of available tonnage in the Pacific region,” shipbroker Intermodal wrote in a weekly note.
The panamax index extended gains by 23 points, or 1.5%, to 1,521.
Average daily earnings for panamaxes , which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased $208 to $13,689.
Among smaller vessels, the supramax index was up 24 points, or 2.6%, at 942.
Iron ore futures climbed as investors were buoyed by prospects of fresh measures from China to prop up its struggling property sector, the largest steel consumer in the world’s second-largest economy.
Source: Reuters reported by Daksh Grover in Bengaluru and edited by Shilpi Majumdar
