- Baltic Dry Index dips 0.1% as panamax and supramax vessel rates fall, despite capesize segment gains.
- Capesize index reaches a two-week high, but panamax hits a low since November.
- Supramax index extends its decline.
- Global shipping firms divert routes amidst Red Sea tensions; Maersk pauses cargo movements
The Baltic Exchange’s dry bulk sea freight index experienced a mild downturn on Wednesday, with a decrease in rates for panamax and supramax vessels overshadowing the gains seen in the capesize segment.
Capesize Segment Soars, While Panamax Faces Setback
The overall Baltic Dry Index (BDI), considering rates for capesize, panamax, and supramax shipping vessels, witnessed a decline of 2 points, or 0.1%, settling at 2,091. Contrarily, the capesize index surged by 85 points, or 2.4%, reaching 3,569, marking its highest point in over two weeks.
Average Daily Earnings for Capesize Vessels Rise
Average daily earnings for capesize vessels, responsible for transporting substantial cargoes like iron ore and coal, observed an increase of $703, reaching $29,599. This positive trend aligns with the rise in iron ore futures, driven by expectations of additional fiscal stimulus in China and bets on industry growth.
Panamax Hits Lowest Level Since November 16
However, the panamax index faced a setback, declining by 64 points, or 3.4%, to 1,808, marking its lowest level since November 16. Average daily earnings for panamax vessels, which commonly transport 60,000 to 70,000 tons of coal or grain cargo, fell by $580 to $16,271.
Supramax Index Records Extended Decline
In the smaller vessel category, the supramax index continued its decline for the 15th consecutive session, reaching a more than five-week low. It fell by 37 points to 1,271.
Global Shipping Companies Divert Routes Amidst Red Sea Tensions
The Baltic Exchange, which observed a week-long holiday from December 25 to December 29, 2023, reported that some of the world’s largest shipping companies are diverting vessels around southern Africa’s Cape of Good Hope. This response comes in light of attacks on vessels in the Red Sea by Iranian-backed Houthi militants in Yemen, adding both time and costs to voyages.
Maersk Pauses Cargo Movement in Response to Evolving Situation
Denmark’s Maersk announced on January 2 that it would “continue to pause all cargo movement through the area while we further assess the constantly evolving situation,” in response to the aforementioned attacks.
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Source: HotCopper
