Reuters reported that the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Wednesday on lower rates for capesize and panamax vessels.

The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, fell 6 points or 0.83 percent to 718 points.

The overall index, which gauges the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, has fallen about 59 percent this year.

Mr Andy Jamison, shipping blogger and owner of the Virtual Shipbroker said that "Overall the sentiment is still bad across all sectors. Despite record scrappings, the order books remains very large and most of the world remains either in recession or on the cusp.”

"The entire industry should also be worried about the move away from coal as a energy source toward gas and natural solutions. This will no doubt continue to have huge consequences on dry bulk vessel demand into the mid and distant futures."

The Baltic's capesize index dipped 5 points or 0.42% to 1,177 points. Capesizes typically transport 150,000 tonne cargoes such as iron ore and coal.

Average earnings for capesizes, which have fallen about 88% so far this year, was up $21 to USD 3,296 on Wednesday.

RS Platou Markets analyst Frode Morkedal said in a note that "Brokers explained the increase in rates on tighter vessel supply as bad weather and typhoons led to delays, forcing the miners to pay up for prompt tonnage.”

Source - Reuters

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