As Reuters reports, the Baltic Exchange’s main sea freight index dropped on Wednesday, February 5, with the capesize segment dropping to an all-time low due to reduced demand for ships and the muted activity in China due to the coronavirus outbreak.
It is said that the Baltic index, tracking rates for capesize, panamax and supramax vessels to ferry dry bulk commodities, dropped 23 points, or 5.0%, to 430.
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Specifically, the capesize index declined 50 points to a negative 183, down for the 39th straight session- with average daily earnings, typically transporting 170,000-180,000 tonne cargoes including iron ore and coal, dropping $481 to $3,015.
The panamax index dropped six points, or 1.1%, to 520. Average daily earnings for panamaxes, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, fell $57 to $4,681.
The supramax index dropped six points to 512.
It is said that factories in China remained shut after the Lunar New Year holiday due to the coronavirus outbreak, which has led to the deaths of nearly 500 people in China and infected over 24,000.
Yesterday BBC reported that except disruptions in the shipping industry, the coronavirus has negatively affected crude oil performance, as the cost of crude hit its lowest level in a year after falling 20% since its peak in January.
China, which is said to be the world’s biggest importer of crude oil, on an everyday basis consume approximately 14 million barrels a day. Yet, because of the virus, the country needs a lot less oil to power machinery, fuel vehicles, and keep the lights on.
