Capesize rate decline drags Baltic dry index to one-month low

The Baltic Exchange's dry bulk sea freight index fell to a one-month low on Tuesday, weighed down by a decline in Capesize vessel rates.

The main index dropped five points, or 0.4 per cent, to 1,431 points. The contract hit its lowest level since June 3.

The Capesize index fell 74 points, or about 4.1 per cent, to 1,751. The contract was down for a sixteenth straight session. Average daily earnings for Capesize vessels decreased $611 to $14,521.

Iron ore futures prices rebounded on Tuesday, supported by resilient near-term demand in top consumer China, although caution triggered by US President Donald Trump's threat of higher tariffs capped gains.

Trump on Monday warned that steep US tariffs would take effect from August 1, targeting both major suppliers like Japan and South Korea and smaller trade partners. On Tuesday, Japan and South Korea said they would seek talks with Washington to ease the impact.

The Panamax index rose 38 points, or 2.5 per cent, to 1,569, marking its highest level since August 12 last year. Average daily earnings for Panamax vessels gained $344 to $14,121.

Among smaller vessels, the supramax index added 25 points, or 2.3 per cent, to 1,125.

(Reporting by Sherin Elizabeth Varghese in Bengaluru; Editing by Shreya Biswas)