The Baltic Exchange’s main sea freight index was down on 20 July 2020, weighed by weakness across capesize and panamax vessel segments, as reported by Reuters.
The Baltic dry index, which tracks rates for ships ferrying dry bulk commodities and reflects rates for capesize, panamax and supramax vessels, fell 32 points, or approximately 1.9%, to 1678, the lowest in nearly a month.
The Baltic capesize index dipped 75 points, or 2.5%, to 2950.
Average daily earnings for capesizes, which typically transport cargoes of 170 000 – 180 000 t, including iron ore and coal, was down by US$616 at US$24 469.
Iron ore futures slipped on 20 July 2020 on rising port inventory of the steelmaking ingredient in China.
However, Randy Giveans, Vice President, Equity Research, at Jefferies, noted that “the dry bulk shipping market has rallied into the summer and 2H20 should be much stronger than the first half due to economic recovery in China, increasing Brazilian iron ore exports and very low fleet growth.”
Rising demand for iron ore from China, as the world’s second-largest economy gradually opens up for business after months of virus-led lockdowns, has helped the capesize segment to gain 51% so far this year.
The panamax index was down 39 points, or 2.6%, at 1465.
Average daily earnings for panamaxes, which usually carry coal or grain cargoes of approximately 60 000 – 70 000 t, fell by US$344 to US$13,188.
Read the article online at: https://www.drybulkmagazine.com/shipping/21072020/baltic-index-dips-as-capesize-and-panamax-rates-fall/