The Baltic Exchange's dry bulk freight index fell on Monday, pressured by weakness in the Capesize vessel category.
The main Baltic index fell nine points, or 0.3 per cent, to 2,720.
The Capesize index was down 54 points, or 1.32 per cent, at 4,053. Average daily earnings for Capesize vessels fell $495 to $33,253.
Iron ore supply from Australia is expected to tighten due to an impending strike by BHP workers at Port Hedland in Western Australia this week over better pay and working conditions.
Meanwhile, the Panamax index gained eight points, or 0.4 per cent, to 2,291. Average daily earnings for Panamax vessels rose 72 points to $20,617.
Assuming the agreement is formally signed on Friday as currently anticipated, we would expect a gradual rather than immediate normalisation of shipping activity through the Strait of Hormuz, said Maria Bertzeletou, senior market analyst at The Signal Group.
Shipping and freight rates have been increasing due to the Middle East war-linked closure of the Strait of Hormuz, the world's most critical oil artery.
Among smaller vessels, the supramax index was up 22 points, or 1.3 per cent, at 1,664.
(Reporting by Katha Kalia and Anushree Mukherjee in Bengaluru; Editing by Diti Pujara)
