Baltic Index records monthly drop on bigger vessel slump

Lower rates for Capesize and Panamax vessels affect Index

{reg}The Baltic Exchange's primary sea freight index, which tracks rates for ships transporting dry bulk commodities, posted its first monthly decline in three months. This drop was driven by reduced rates in the larger capesize and panamax vessel segments. The overall index, considering capesize, panamax, and supramax shipping vessels, fell by 8 points to 1,086.

During the month of August, the main index declined by 3.6 percent. The capesize index experienced a significant fall, dropping 29 points or 2.6 percent to 1,094, marking its lowest level in nearly six months. For the month, the capesize index plummeted by 41.6 percent. Average daily earnings for capesize vessels, known for transporting large cargoes like iron ore and coal, decreased by USD 238 to USD 9,072. The panamax index also slipped, losing 18 points or 1.2 percent to reach 1,503. However, it achieved a notable gain of 50.9 percent for the month, marking its best monthly percentage increase since September. Average daily earnings for panamax vessels, typically carrying coal or grain cargoes of around 60,000 to 70,000 tonnes, decreased by USD 163 to USD 13,526.

Despite some positive signs, there remains a gap between owners' price expectations and charterers' willingness to pay, particularly in the Pacific market, as noted by shipbroker Fearnleys in a weekly report concerning the panamax segment.

Among smaller vessels, the supramax index gained 20 points or about 2.1 percent, reaching 962, with a monthly climb of 33.8 percent.[/reg]