Monday, 6 August 2012

Weak panamax rates drag down Baltic index

Fri Aug 3, 2012
Aug 3 (Reuters)
- The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell further on Friday as a rise in capesize rates was offset by weakness in the panamax segment.

The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 1.05 percent to 852 points. The index has fallen about 9 percent this week.

The panamax index fell 2.26 percent to 910 points, with average daily earnings for panamaxes, which typically transport 60,000-70,000 tonne cargoes of coal or grains, down $165 at $7,258.

The segment, which ships about 50-60 percent of coal cargoes, has also been suffering from a lack of inquiries as well as a drain in grain cargoes from the east coast of South America, analysts said.

Hot and dry weather conditions in the United States are causing further concerns about the country's grain harvest, with yields expected to be much lower than previously forecast, Braemar Seascope said in its weekly report.

"This is casting doubts on hopes of (panamax) market improvements for Q4 dates and operators are not as forthcoming with their rate ideas for forward grain cargoes," the shipbroking company added.

The capesize index recovered from its more than three-week losing streak to be up 1.87 percent at 1,200 points.

Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up $91 at $4,346.

(Reporting by NR Sethuraman in Bangalore; Editing by David Goodman)

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