Weaker Demand for Larger Vessels Weighs on Baltic Index

Baltic Exchange's main sea freight index, which tracks rates for ships ferrying dry bulk commodities, dipped on Thursday, pressured by weaker demand for capesize and panamax vessels.

The overall index, which factors in rates for capesize, panamax and supramax vessels fell for the sixth straight session, by 47 points, or 2.8 percent, to 1,614 points.

The capesize index shed 168 points, or 5.6 percent — its largest daily percentage fall since July 10 — to 2,826 points. Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes such as iron ore and coal, decreased $1,050 to $21,354.

The panamax index fell 31 points, or 1.9 percent to 1,608 points. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, fell $249 to $12,876.

* The supramax index, rose 7 points to 1,128 points.

Reporting by Arijit Bose