Baltic index falls on lower dry bulk vessel demand

Sunshine Pride vessel of NYK Line (Image: NYK Line)

The Baltic Exchange's dry bulk chartering index, which tracks charter rates for dry bulk carriers, fell on Wednesday, pressured by lower freight rates across all vessel segments.

The Baltic Index, which reflects freight rates for capesize, panamax and supramax carriers, fell 44 points, or 2.9%, to its lowest level in more than a week at 1,463.

The capesize vessel index lost 89 points, or 4.7%, at 1,822.

The average daily charter rate for capesize vessels, which normally transport 150,000 tonnes of cargo such as iron ore and coal, fell $743 to $15,106.

However, shipping brokerage Intermodal stated recently that the outlook for the capesize class looks more promising amid optimism about recovering mineral demand in China.

Dalian iron ore futures rose as China's strong loan growth in the first quarter bolstered economic recovery hopes for the world's largest steelmaker, although traders remained wary of growth and regulatory risks.

The panamax ship index fell 40 points, or about 2.2%, to 1,812 - the biggest drop since March 22.

Average daily charter rates for panamaxes, which typically carry coal or grain cargo between 60,000 and 70,000 tonnes, fell $357 to $16,312.

Among smaller ships, the supramax vessel index fell 13 points to 1,118.

Read more:

• Shanghai Containerized Freight Index slightly increases in six months

Source: Phaata.com (According to Reuters)

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