Baltic Index Falls on Dip in Larger Vessels

The Baltic Exchange's main sea freight index fell on Monday, pressured by a dip in the Capesize and Panamax vessel segments. 

The overall index, which factors in rates for Capesize, Panamax, and supramax shipping vessels, was down 17 points, or 0.9%, at 1,944.

The capesize index lost 55 points, or 2.3%, at 2,341.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron ore used in construction, was down $456 at $19,418. 

Meanwhile, iron ore prices rose, as portside inventory in top steel producer China shrank during the Golden Week holidays to its lowest since mid-July, indicating strong demand for the steel-making ingredient. 

The panamax index snapped a four-session winning streak and fell by 7 points, or 0.3%, to 2,228. 

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, was down $68 at $20,048. 

Heavy rainfall in India has damaged key summer-sown crops such as rice, soybean, cotton, pulses, and vegetables just before harvesting, which could stoke food inflation. 

Higher food prices could prompt New Delhi to slap additional restrictions on exports of food commodities. 

South Africa's Kumba iron ore's production and exports will be hampered by a strike at state-owned logistics company Transnet, the miner said.  The supramax index rose for the fifth straight session, adding 8 points to 1,714. 

(Reuters - Reporting by Harshit Verma in Bengaluru; Editing by Maju Samuel)