Baltic Index Drops to Lowest Since June 2020
The Baltic Exchange's dry bulk sea freight index fell to its lowest since June 2020, weighed by weaker demand for capesize and panamax vessels.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, fell 13 points, or 1.9%, to 668 on Wednesday.
The capesize index dropped 33 points, or about 6.2%, to its lowest in five months at 499. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, decreased $274 to $4,137.
Meanwhile, Chinese coking coal futures extended losses to hit their lowest in four weeks on Wednesday, as traders kept an eye on a batch of Australian coal cargoes expected to arrive soon in top steel producer China.
The panamax index lost 23 points, or 2.2%, to 1,029, its lowest since June 17, 2020. Average daily earnings for panamax vessels .BPWT, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased by $202 to $9,262.
Among smaller vessels, the supramax index .BSIS rose 10 points, or about 1.5%, to 680.
(Reuters - Reporting by Ananya Bajpai in Bengaluru; Editing by Shilpi Majumdar)