The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, edged lower on Thursday, as steady capesize rates offset declines in smaller vessel rates.
The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 8 points, or 0.44%, to 1,796.
The capesize index was steady at 2,584.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes of iron ore and coal, among others, increased $3 to $21,432.
“Increased domestic mining and growing renewable energy in China in the second half of 2024 may reduce steam coal imports, impacting Panamax and Supramax shipping,” BIMCO’s shipping analyst Filipe Gouveia wrote in a note.
“China’s coal shipment outlook depends on its government’s investment in the electricity grid and energy storage for renewable energy transition. Successful investments could lead to peak steam coal demand and a decline in shipments,” Gouveia added.
Iron ore futures fell on Thursday, following a weaker base and precious metals market, driven by a stronger U.S. dollar which spurred a broad risk-off sentiment.
The panamax index gained 1 points, or about 0.05%, at 1,832.
Average daily earnings for panamax vessels, which usually carry about 60,000-70,000 tons of coal or grain cargo, rose $16 to $16,492.
Among smaller vessels, the supramax index fell by 26 points, or 1.90%, to 1,345.
Source: Hellenic Shipping News
