The Baltic Exchange’s main sea freight index remained flat on Thursday. The higher panamax vessels rates offset weaker rates for other vessel categories, reports Reuters.
How Baltic index remained unchanged
- The Baltic index, which tracks rates for capesize, panamax and supramax vessels that ferry dry bulk commodities, was unchanged at 421.
- The main index slid to a near 4-year low of 411 earlier this week.
Capesize
- The capesize index fell 25 points to negative 284.
- Average daily earnings for capesizes, which typically transport 170,000-180,000 tonne cargoes including iron ore and coal, fell $181 to $2,532.
- According to ship broker Fearnleys the capesize market is still sliding with few signs of an imminent turnaround.
- Preliminary indicators of China’s coal consumption, steel production and iron ore imports show a complete collapse in the last few weeks.
- Iron ore spot prices rallied after Brazil’s Vale on Tuesday revised down its iron ore production forecast for Q1 2020 to 63-68 million tonnes, from 68-73 million tonnes, due to recent heavy rains.
Panamax
- The panamax index rose 30 points, or 5.2%, to 612.
- Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, increased $272 to $5,506.
Supramax
- The supramax index fell 4 points to 468.
- It was another horrifying week for supramax owners, with many in Asia refusing to take a negative cost.
- Fearnleys said, adding oversupply of tonnage in Atlantic and poor cargo supply pushed the market further down.
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Source: Reuters
