Fell down 0.97 percent since last Friday
The Baltic Exchange’s main sea freight index , which tracks rates to ship dry commodities, fell nearly one percent on Monday as both capesize and panamax contracts pulled down the market over economic fears and low iron ore trade volumes.The renewed fall means that the index has fallen for five straight sessions to its latest settlement of 1,340 points, down 0.97 percent since last Friday.
Although the Baltic dry index was fairly stable in June, it has shed over 20 percent in value since the beginning of the year as the market remains oversupplied and new vessels continue to enter the market.
“The situation is unchanged from last week, with iron ore trading in India very low because of the monsoon season, but also because markets are really concerned about the health of the global economy,” one freight analyst said.
“Shipping markets in particular react nervously when there are fears over the health of global trading, and this is even more so the case when there are more than enough ships covering demand,” he added.
Capesize rates were also down nearly one percent, shedding 18 points to 1,900 points.
Average capesize daily earnings dropped $188 to $11,341. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
The Baltic’s panamax index was even weaker, falling by nearly 1.5 percent, or 23 points, to a settlement of 1,555.
Average daily earnings for panamaxes, which usually transport 60,000-70,000 tonne cargoes of coal or grains, were down $187 to $12,416.
Supramax rates were down one point to 1,270 and handysize rates fell three points to 693 points.