The Baltic Exchange’s main sea freight index snapped a three-session long streak of gains on Tuesday, due to a fall in capesize and supramax rates.
The overall index, which factors in rates for capesize, panamax, and supramax shipping vessels, was down 19 points, or about 1.7%, at 1,114 points, its lowest in over a week.
The (dry bulk) market lacks any positive indication in the near term and demand-side fundamentals have a fair amount of uncertainty, Allied Shipbroking said in a weekly note.
There is a considerable amount of market risk arising from the poor economic indicators of G20 economies, Allied added.
But over the mid to longer term, demand fundamentals remain positive, making the outlook for the dry bulk sector “cautiously positive”, Athens-based EastGate Shipping said.
The capesize index also snapped its three session gain streak, losing 116 points, or 13.7%, to 728 points.
Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as coal and steel-making ingredient iron-ore used in construction, fell by $963 to $6,037.
The panamax index was up 86 points, or 6.48%, at 1,327 points, marking its biggest gains in almost seven months.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, was up $774 to $12,715.
Major grain supplier, Brazil’s expected increased soyabean exports in the 2022/23 season “gives hope to earnings’ projections for the medium-sized bulkers that tend to carry the commodity in longhaul voyages”, EastGate said.
The supramax index fell for an eighth consecutive session, losing 11 points to 1,487 points.
Source: Reuters (Reporting by Harshit Verma in Bengaluru; editing by David Evans)