The Baltic Exchange’s dry bulk sea freight index, which measures shipping rates for vessels transporting dry bulk commodities, fell to a three-week low on Tuesday on lower rates for capesize and panamax vessels.
The main index, which monitors rates for capesize, panamax and supramax shipping vessels, fell 24 points, or 1.84%, to 1,280, its lowest since April 22.
The capesize index lost 60 points, or 3.47%, to 1,671.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $495 to $13,859.
Iron ore futures touched a more than two-week high on Tuesday, supported by U.S.-China trade truce, although caution over a final deal and potentially slower near-term demand capped gains.
Beijing and Washington on Monday announced an unwinding of most duties imposed on each other’s goods since early April, after weekend talks in Geneva.
The panamax index shed 26 points, or 1.94%, to 1,316, its lowest since April 22.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, were down $231 at $11,844.
“What we see is an oversupply in the Pacific, which is pressing rates down, also, coal shipments to China remain weak,” said Yiannis Parganas, head of Intermodal’s research department.
Among smaller vessels, the supramax index added seven points to 977.
Source: Reuters
