The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry commodities, dipped on Tuesday due to a decline in capesize rates, after scaling a seven-month high in the previous session.
The main index, which monitors rates for capesize, panamax and supramax shipping vessels, lost 11 points, or 0.6%, to 1,680. The index hit its highest since November 18 on Monday.
The capesize index was down 54 points, or 1.8%, at 2,956.
Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, fell $442 to $24,519.
“We note that the China iron ore import price arbitrage has widened recently with domestic iron ore priced at a $7/ton premium to landed prices from the international markets, which is likely playing a key role in boosting iron ore import demand into China,” Jefferies analysts said in a note.
Iron ore futures extended their decline into a second straight session, dragged by expectations of growing supply, although resilient demand from top consumer China and hopes of easing Sino-U.S. trade tensions curbed losses.
Top officials from the U.S. and China sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths, with trade talks extending to a second day in London.
The panamax index firmed 36 points, or 2.9%, to 1,300, a four-week high.
Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, were up $320 at $11,698.
Among smaller vessels, the supramax index was down 7 points at 919, a near three-month low.
Source: Reuters
