Reuters reported that the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, was unchanged on due to a slowdown in vessel activity.

The overall index, which reflects the daily freight market prices for capsize, Panamax, Supramax and Handysize dry bulk transport vessels, remained at 978 points. The index rose 4% this week.

Mr George Lazaridis, head of research with Greek shipbroker Intermodal, said that "We saw a temporary increase in cargoes but things are starting to slow down again."

Mr Lazaridis said that Baltic's capsize index rose 3 points or 0.26% to 1,155 points. Capsizes were up due to slight activity but iron ore prices have to drop considerably for the trader to stockpile again.

Average daily earnings for capsizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up USD 20 at USD 3,570.

Physical trading in the spot iron ore market was limited with a public holiday in top importer China, a day after the benchmark price rose for a 10th straight session in its longest upward streak in seven months.

Iron ore shipments account for around a third of seaborne volumes on the larger capsizes, and brokers said price developments remained a key factor for dry freight.

The Baltic's Panamax index fell 2.33% to 1,048 points, with average daily earnings for panamaxes, which typically transport 60,000 to 70,000 tonne cargoes of coal or grains, down USD 198 at USD 8,345.

Mr Lazaridis said that demand for panamaxes generally soften during the summer period. He added that "Grain cargoes are going to decrease. The Pacific is not showing the typical strength it had a year back."

Source - Reuters

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