Baltic Sea Freight Index Flat for Second Straight Session

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, remained flat for the second straight session on Friday on muted vessel activity.

 

The index, which factors in average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was unchanged at 580 points.

 

The capesize index rose five points to 466 points.

 

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, increased by $65 to $4,272.

 

While capesize rates were increasing, it was still at "dire levels," ship broker RS Platou said in a note on Friday, adding that the freight market was currently suffering on expectations of lower iron ore prices in the coming months.

 

Iron ore is veering towards a new crisis as prices for future delivery of the commodity have slid 30 percent in the space of a month.

 

The panamax index went up nine points to 600 points.

 

Average daily earnings for panamaxes, which usually carry 60,000 to 70,000-tonne cargoes of coal or grain, rose $68 to $4,788.

 

The handysize index fell six points to 373 points while the supramax index shed four points at 613 points. Handysize and supramax vessels are smaller than capesizes and panamaxes.