The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry bulk commodities, fell to a near two-week low on Tuesday, as vessel rates weakened across the board.
The main index, which factors in rates for capesize, panamax and supramax shipping vessels, fell 137 points, or 5.1%, to 2,557 points, its lowest since November 27.
The capesize index lost 382 points, or about 7.6%, to 4,631 points, hitting a one-week low.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $3,168 to $38,403.
Iron ore futures prices extended their declines on Tuesday, as the big Simandou project in Guinea, West Africa, shipped its first ore, raising the prospect of more supply at a time when demand in top consumer China is set to decline amid falling steel output.
The panamax index fell to a two-month low, losing 27 points, or 1.5%, to 1,786 points, its lowest level since October 10.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, decreased by $235 to $16,078.
Among smaller vessels, the supramax index lost 11 points to 1,419 points.
Source: Reuters
