Baltic index hits one-month low as larger vessel rates retreat

The Baltic Exchange's main sea freight index fell to a one-month low on Wednesday, as rates declined across Capesize and Panamax vessel segments.

The main index slipped to its lowest point since June 3, easing 15 points, or one per cent, to 1,443 points.

The Capesize index dropped 53 points, or 2.6 per cent, to 1,958 points, an over one-month low. Average daily earnings for Capesize vessels decreased by $435 to $16,242.

Iron ore futures climbed across all benchmarks as shipments from top exporters Australia and Brazil dropped, while an increase in hot metal output buoyed investor sentiment.

The Panamax index slipped eight points, or 0.5 per cent, to 1,492 points. Average daily earnings for Panamax vessels was down by $74 to $13,424.

Among smaller vessels, the supramax index gained 13 points to 1,031 points.

Allied Shipbroking in a note on Tuesday said, "the US Gulf market softened under growing prompt supply and sluggish demand, while the South Atlantic remained steady with limited fixing."

"The Pacific proved more encouraging as Indonesian and NoPac demand lifted sentiment and allowed owners to resist charterers' attempts to trim rates."

(Reporting by Sarah Qureshi in Bengaluru; Editing by Shailesh Kuber)