Declined capesize earnings weaken Baltic Index

Baltic Index

Strengthened panamax rates earlier January did not retain Baltic Index due to diluted capesize demands

Earlier this month, stronger panamax rates raising the Baltic Exchange’s main sea freight index elevated the industry’s optimism as it offset a drop in the larger capesize sector. However, further weakened rates for the larger capesize segment instead implicated panama’s and supramax’s performance.

The Baltic dry index tracks rates for capesize, panamax and supramax vessels. As at 25 January 2021, rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell 45 points (2.5 per cent), to 1,765; its lowest since 18 January 2021.

The capesize index dropped 153 points (5.2 per cent) to 2,817, the lowest within a fortnight. Capesizes which typically transport 150,000-tonne cargoes such as iron ore and coal, had its earnings decline by $1,265 to $23,366. The most actively traded iron ore futures on the Dalian Commodity Exchange closed at 0.8 per cent lower to 1,047 yuan ($161.65) per tonne. Iron ore futures reportedly clocked around 680 transactions in 2020, which translates to approximately 85 million mt.

The panamax index rose 6 points (0.4 per cent), to 1,665, marking an over five-month peak. The average daily earnings for panamaxes were up $54 at $14,988. They usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes. Supramax index scored its highest of 10 points to 1,152, with the last peak dated October 2019.

 

Source:
Hellenic Shipping News
Shipping Herald  (For early Jan’s rates rise)
Sp Global (For 2020’s count of transactions)

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