Baltic index rises on higher Capesize vessel rates

The Baltic Exchange's dry bulk sea freight index, which tracks rates for ships carrying dry bulk commodities, rose on Wednesday on higher rates for the Capesize vessel segment.

The main index, which monitors rates for Capesize, Panamax and supramax shipping vessels, added seven points, or 0.5 per cent, to 1,303.

The Capesize index was up 65 points, or 3.6 per cent, at 1,874. Average daily earnings for Capesize vessels rose $534 to $15,539.

Iron ore futures prices dipped for a fourth consecutive session while rebar prices slipped to their lowest since 2020, pressured by slowing steel production in top consumer China.

"While major bulks face headwinds, bauxite trade stands out as a notable exception in an otherwise uneven dry bulk landscape, influenced by weakened Chinese dry bulk demand due to declining local manufacturing activity and projected slower GDP growth," Nikos Tagoulis, Senior Analyst at Intermodal said in a note.

The Panamax index fell for a fifth straight session by 39 points, or three per cent, to 1,169, its lowest in more than two months since March 12. Average daily earnings for Panamax vessels receded $346 to $10,523.

Among smaller vessels, the supramax index dipped 10 points to 964, its lowest level in three weeks.

(Reporting by Ishaan Arora in Bengaluru; Editing by Tasim Zahid)