The Baltic Exchange’s dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, extended its losses to a nearly two-year low on Tuesday, pressured by a dip in rates across vessel segments.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 15 points to 746 points, its lowest since February 2023.
The capesize index slipped 27 points to 931 points, down to March 2023 levels.
Shipments to China are estimated to fall by half for the month of January, due to the decline in demand for soybeans, maize and wheat caused by low-crusher margins, high inventory and record high domestic harvest in 2024, said Filipe Gouveia, Shipping Analysis Manager at BIMCO, in a note.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, lost $221 to $7,725.
The panamax index fell 11 points to 748 points, hitting its lowest since May 2020.
Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain, decreased by $91 to $6,736.
Panamax ships have been especially affected by the slowdown in grain shipments to China as they carry 83% of grain cargoes to the country, Gouveia added.
Among smaller vessels, the supramax index was down 10 points at 619 points, its lowest since June 2020.
Source: Reuters
