Baltic Index Decreases Due to Weaker Rates in All Segments
Published on: February 3, 2024.
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Baltic Index Witnesses Decline on Weaker Rates in Shipping Industry
In a recent development, the Baltic Exchange’s dry bulk sea freight index experienced a fall due to lower rates across all vessel segments. This decline marks the largest drop in over two weeks.
The overall index, which takes into account rates for capesize, panamax, and supramax shipping vessels, recorded a decrease of 63 points, or 4.3%, standing at 1,397 points.
The capesize index, specifically, witnessed a decline of 146 points, reflecting a 7.4% drop to 1,824 points. This is the lowest the index has been since January 17th.
As for the average daily earnings for capesize vessels, which are primarily used for transporting 150,000-ton cargoes like iron ore and coal, there was a decrease of $1,207, resulting in earnings of $15,130.
The panamax index also faced a downturn, falling by 50 points, or 3%, to 1,636 points. This marks the largest decrease the index has seen in the past 20 days.
Average daily earnings for panamax vessels, generally used for carrying 60,000 to 70,000 tons of coal or grain cargo, experienced a decline of $450, reaching earnings of $14,725.
On a separate note, it is predicted that Pakistan’s rice exports will reach a record high in the coming year, ending in June. This surge in exports can be attributed to India’s decision to limit its own shipments, leading buyers to source rice from Islamabad. Pakistan is offering the grain at prices that haven’t been seen in 16 years.
Lastly, the supramax index, which includes smaller vessels, witnessed a decline of 4 points, marking its first decrease in a week, bringing the index to 1,061 points.
Overall, these fluctuations indicate a challenging time for the shipping industry, particularly for the rates across various vessel segments.
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