Baltic Index Logs 10% Weekly Drop as Demand for Larger Vessel Wilts Away
The Baltic Exchange's main sea freight index closed the trading week at a 10% decline, pressured by lower demand in the larger vessel segments.
The overall index that factors in rates for capesize, panamax, and supramax shipping vessels carrying dry bulk commodities, however, edged up by 1 point to 978 on Friday.
The capesize index gained 21 points, or about 1.5%, to 1,442, but has fallen nearly 13% this week.
Average daily earnings for capesizes, which typically transport 150,000-ton cargoes such as iron ore and coal, increased by $171 to $11,958 on Friday.
Iron ore futures edged lower after a brief bounce in the previous session, dragged lower by a faltering property sector and steel production restrictions.
The panamax index dropped 21 points, or 2.2%, to 924, continuing its falling streak for the sixth straight session.
For the week, the index has dropped 15.6%.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, decreased $183 to $8,320.
Among smaller vessels, the supramax index edged up by 1 point to 758.
(Reuters - Reporting by Daksh Grover in Bengaluru; Editing by Shweta Agarwal)