Baltic Exchange’s Dry Bulk Sea Freight Index Drops

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  • The overall index.BADI, which factors in rates for capesize, Panamax, and supramax shipping vessels.
  • Iron ore futures dipped for a third consecutive session.
  • The supramax index continued its decline for the 18th session.

Overall Index Decline

The Baltic Exchange’s dry bulk sea freight index, including rates for capesize, Panamax, and supramax vessels, fell by 4.2% to 2,022, marking its lowest since Nov, reports Hot Copper.

Capesize Vessels

The capesize index dropped by 5.2% to 3,599, breaking a five-session winning streak.

Daily earnings for capesize vessels, mainly transporting 150,000-tonne cargoes like iron ore and coal, decreased to $29,851, down $1,646.

Factors Influencing Decline

Iron Ore Futures

Iron ore futures dipped for a third consecutive session, hitting their lowest in a week due to decreasing demand and steel margins, prompting some investors to book profits.

Panamax Vessels

The Panamax index fell by 3.7% to 1,605, the lowest since mid-November.

Daily earnings for Panamax vessels, typically carrying 60,000 to 70,000 tons of coal or grain cargo, slipped to $14,449, down by $544.

Supramax Vessels

The supramax index continued its decline for the 18th session, dropping by 18 points to 1,194.

Shifting Shipping Routes

Global shippers are diverting from the Red Sea, the shortest route from Asia to Europe via the Suez Canal. This change is due to increased attacks by Iranian-backed Houthi militants in Yemen on vessels in the Gulf region, showing support for Palestinian Islamist group Hamas fighting Israel in Gaza.

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Source: Hot Copper

 

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