Capesize weakness drags down Baltic sea freight index

The Baltic Exchange’s main sea freight index slipped on Monday over declining rates in the capesize vessel segment.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, was down 32 points, or 1.5%, at 2,114 points.

The capesize index lost 100 points, or 3.7%, to 2,596 points, its lowest since July 11.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, were down $836 at $21,526.

Meanwhile, iron ore futures soared, extending a rally spurred by hopes of an economic rebound for top steel producer and consumer China in the third quarter, and support for the country’s troubled property sector.

The panamax index was up for the fifth straight session, gaining 7 points, or 0.33%, at a two-week high of 2,100 points.

Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, increased by $62 to $18,900.

Top exporter Ukraine’s grain shipments in the first 24 days of July, the first month of the 2022/23 season, were down 39.5% year on year at 1.08 million tonnes, the agriculture ministry said.

However, Ukraine said it hoped a U.N.-brokered deal aimed at easing global food shortages by resuming grain exports from the Black Sea region would start being implemented this week.

The supramax index fell by 1 point to 2,079 points, snapping four sessions of gains.
Source: Reuters (Reporting by Deep Vakil in Bengaluru; Editing by Shailesh Kuber)