The Baltic Exchange’s dry bulk sea freight index fell on Wednesday for the third straight session, hitting its lowest level in nearly two months on sustained weakness in rates due to seasonally slow demand in the run-up to the Chinese New Year, reports XM.
BADI
The overall index BADI, which factors in rates for capesize, Panamax, and supramax shipping vessels, lost 211 points, or 11.3%, to 1,664, its lowest level since Nov. 13.
The period approaching the Lunar New Year, on Feb. 10 this year, typically sees weaker freight rates as 38% of global dry bulk cargoes head to China, BIMCO shipping market analyst Filipe Gouveia said, adding that rates are expected to recover towards the end of February.
The capesize index BACI dropped by 553 points, or 17%, to 2,696, logging its biggest daily decline since Dec. 7.
Average daily earnings for capesize vessels.BATCA, which typically transports 150,000-tonne cargoes such as iron ore and coal, decreased by $4,579 to $22,362.
The Panamax index BPNI fell 70 points, or 4.6%, to 1,464, in its ninth straight session of declines.
Average daily earnings for Panamax vessels.BPWT, which usually carries about 60,000 to 70,000 tons of coal or grain cargo, slipped by $637 to $13,173.
Ukraine exported 4.8 million metric tons of food via its Black Sea corridor in December, surpassing the maximum monthly volume exported under a previous U.N.-brokered grain deal, brokers said.
Among smaller vessels, the supramax index BSIS was down for the 20th consecutive session. It fell 27 points to 1,135.
U.S. and British naval forces shot down 21 drones and missiles fired by Yemen-based Houthis on Tuesday towards the southern Red Sea, the United States said, with Britain hinting at further measures to protect international shipping lanes.
“Only 4% of dry bulk cargo passes through the Red Sea, as such, its impact on dry bulk freight rates is not as significant as in other shipping sectors,” Gouveia said.
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Source: XM
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