Demand for Larger Dry Bulk Vessels Wanes

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell for a fourth straight session on Wednesday, pressured by lower rates for larger capesize and panamax vessel segments.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell by 33 points, or 3.2%, to 1,004.

The capesize index went down by 61 points, or 4%, to its lowest level in near six-week at 1,468.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes carrying commodities such as iron ore and coal, decreased by $498 to $12,178.

The panamax index shed 59 points or 5.6% to 993 - its biggest daily percentage drop since Jan. 3.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slipped by $530 to $8,940.

Among smaller vessels, the supramax index edged up by 8 points to 754.

"In the Pacific, rates eased back in the face of a plethora of available vessels. Sentiment on the Supramax segment was mixed," brokerage Intermodal wrote in a note dates Tuesday.

Dalian coking coal futures climbed to their highest in nearly three months as mining suspensions in China's Shanxi province stoked worries about the supply of the steelmaking ingredient.

(Reuters - Reporting by Sherin Elizabeth Varghese)