Reuters reported that the Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on a weak Atlantic trade for small panamax vessels.

The overall index, which reflects daily freight market prices for capsize, panamax, Supramax and Handysize dry bulk transport vessels, fell 1.44% to 752 points. The panamax index fell 3.4% to 461 points, with average daily earnings down USD 122 at USD 3,399, the lowest recorded since 1998.

Panamaxes typically transport 60,000 to 70,000 tonne cargos of coal or grains.

Ship broker Intermodal said in a note that "The Panamax sector has been completely insensitive to the gains noted in both the capes and smaller size segments. The market has continued to tumble downwards as activity has remained limited while there is still a considerable amount of open tonnage in both basins."

The Baltic's capsize index fell 1.21% to 1,549 points. Average daily earnings for capsizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were down USD 212 at USD 7,292.

Broker firm Fearnleys said in its weekly report that "Owners are again turning nervous after a period of increased activity and consequent climbing rate levels. Despite an ongoing flow of particularly West Australian ore cargoes, levels again ease off as the tonnage surplus proves more than sufficient to cover positive spot volume fluctuations."

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.

China steel futures fell for the first time in three sessions, putting more pressure on spot iron ore prices that may drop below USD 100 per tonne again this week as a slowdown dents steel demand in the world's top consumer.

Average daily earnings for Handysize ships were down USD 50 at USD 6,980, while those of Supramax ships were down USD 35 at USD 8,822.

Source - Reuters

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