Fri Aug 31, 2012
Aug 31 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Friday as weakness in the panamax segment outweighed a small rise in capesize rates.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 0.57 percent to 703 points. The index has fallen about 2 percent this week.
The panamax index fell 3.03 percent to 735 points, with average daily earnings for panamaxes, which typically transport 60,000-70,000 tonne cargoes of coal or grains, down $184 at $5,840.
"Slow and difficult trading conditions prevail (for panamaxes) with little improvement in the volume of trans-Atlantic cargoes. Conditions are being exacerbated by the steady stream of tonnage ballasting into the U.S. Gulf," Braemar Seascope said in its research note.
"Mineral prices continue to fall, eating away at profit margins for mining companies and encouraging buyers to test the resolve of counterparties regarding their contract obligations."
The capesize index was up 0.26 percent at 1,172 points.
Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up $58 at $3,308.
Iron ore was set to hit nearly three-year lows on Friday, with monthly performance in August its worst in 10 months, as Chinese steel producers shun fresh cargoes in the face of waning demand.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Average daily earnings for handysize ships were down $52 at $6,672, while that of supramax ships were down $22 at $8,960.
(Reporting by NR Sethuraman in Bangalore; editing by Jane Baird)
Aug 31 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Friday as weakness in the panamax segment outweighed a small rise in capesize rates.
The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 0.57 percent to 703 points. The index has fallen about 2 percent this week.
The panamax index fell 3.03 percent to 735 points, with average daily earnings for panamaxes, which typically transport 60,000-70,000 tonne cargoes of coal or grains, down $184 at $5,840.
"Slow and difficult trading conditions prevail (for panamaxes) with little improvement in the volume of trans-Atlantic cargoes. Conditions are being exacerbated by the steady stream of tonnage ballasting into the U.S. Gulf," Braemar Seascope said in its research note.
"Mineral prices continue to fall, eating away at profit margins for mining companies and encouraging buyers to test the resolve of counterparties regarding their contract obligations."
The capesize index was up 0.26 percent at 1,172 points.
Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up $58 at $3,308.
Iron ore was set to hit nearly three-year lows on Friday, with monthly performance in August its worst in 10 months, as Chinese steel producers shun fresh cargoes in the face of waning demand.
Iron ore shipments account for around a third of seaborne volumes on the larger capesizes, and brokers said price developments remained a key factor for dry freight.
Average daily earnings for handysize ships were down $52 at $6,672, while that of supramax ships were down $22 at $8,960.
(Reporting by NR Sethuraman in Bangalore; editing by Jane Baird)
No comments:
Post a Comment