As the week-long chinese new year holiday begins on Thursday, the Baltic Exchange’s main sea freight index slipped for the 2nd time. On tuesday, it plunged further due to low vessel demands.
- The capesize index fell for the first time in 6 sessions.
- The index fell by 31 points.
- The panamax and supramax index showed substantial slip.
The Baltic Index is an overall index, which factors in rates for capesize, panamax, supramax and handysize shipping vessels. It fell 9 points, or 0.8 percent, to 1,114 points.
The capesize index fell for the first time in six sessions, losing 31 points, or 1.7 percent, to 1,793 points. Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell from $243 to $14,075.
Steel and iron ore futures in China edged higher on Tuesday, but gains were capped as trading activity winds down before the Lunar Year break.
The panamax index was down for the 12th straight session, shedding 9 points, or 0.73 percent, to 1,228 points, a fresh low since Sept. 2017. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes, were down $69 to $9,856.
Among smaller vessels, the supramax index fell two points to 817 points, while the handysize index fell two points to 518 points.
Thus, the year end holiday in China has taken a toll on freight index which will ease down as China comes out of the festive season.
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Source: Marine Link