The Baltic Exchange's dry bulk sea freight index declined on Tuesday, weighed down by a slump in Capesize vessel rates.
The main index fell 122 points, or 5.7 per cent, to 2,022 points.
The index posted its best day in four months on Monday on expectations of higher shipping costs following China’s pledge to charge additional port fees on US ships.
On Tuesday, Washington and Beijing began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil.
The Capesize index fell 385 points, or 11.4 per cent, to 3,007 points, a day after it posted its best day since July 11. Average daily earnings for Capesize vessels decreased by $3,194 to $24,938.
Iron ore futures retreated as investors booked profits after focus shifted back to expectations of growing ore supply in the rest of 2025, while steel demand in top consumer China seasonally slows.
The Panamax index rose 0.5 per cent to 1,815 points. Average daily earnings for Panamax vessels rose by $80 to $16,337.
Among smaller vessels, the supramax index rose 0.6 per cent to 1,408 points.
(Reporting by John Biju in Bengaluru; Editing by Sahal Muhammed)
