Baltic Index Records Worst March Since 2009

Posted by Michelle Howard March 29, 2018

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, suffered on Thursday its biggest percentage fall in March since 2009 on weaker demand for capesize vessels.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, closed down 25 points or 2.3 percent at 1,055 points.
The Baltic index fell 11.5 percent this month, its worst performance in March since 2009.
The index on Wednesday suffered its worst one-day percentage drop since Jan. 17. It has fallen about 23 percent this quarter.
The capesize index fell 55 points, or 5.2 percent, to 1,010 points.
The index also recorded its biggest one-day percentage fall since Jan. 17 on Wednesday. It has fallen 64 percent this quarter and 35 percent this month.
Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, fell $355 to $8,339 – levels not seen since July 2017.
"There has been some slowdown after the Chinese New Year and disruptions in both Brazil and ports out of Western Australia, which has affected the capesize demand. Also, there has been more deliveries of new vessels compared to demolition," said Eva Tzima, research analyst with Greek shipbroker Intermodal.
"Even though average capesize earnings are below $9,000 per day, you have one-year charters paying $20,000 per day, which is very impressive and shows that people are confident about the future."
The panamax index dropped 25 points, or 1.6 percent, to end at an over one-month low of 1,495 points.
The index has gained 7 percent this quarter, but down 1.2 percent this month.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $203 to $12,011.
The supramax index fell 13 points or 1.2 percent to 1,080 points.