The Baltic Exchange’s main sea freight index .BADI declined to a more than one-month low on Tuesday, pressured by falling capesize vessel rates.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 47 points to 1,860 points. The index hit its lowest since late August.
The capesize index dipped 172 points to 2,989 points and also hit its lowest in more than a month.
“The Baltic Dry Index has been declining due to a decrease in the capesize index. It seems that the Golden Week holidays in China have negatively impacted cargo loadings on capesize ships,” said Filipe Gouveia, shipping analyst at BIMCO.
“The drop in cargo loadings is large even for Golden Week and it has likely been pressuring freight rates for capesize ships.”
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $1,427 to $24,786.
The panamax index was up 26 points at 1,441 points.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain cargo, increased $236 to $12,969.
Prices of iron ore futures rode a roller coaster on Tuesday as some investors unwound long positions to lock in profits, with some analysts saying top consumer China missed expectations for unveiling more forceful stimulus measures at a presser.
Among smaller vessels, the supramax index .BSIS was up 7 points to 1,264.
Source: Reuters (Reporting by Rahul Paswan in Bengaluru; Editing by Tasim Zahid)
