Monday 10 September 2012

Baltic index down on weak panamax rates

Fri Sep 7, 2012
Sept 7 (Reuters) - The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry commodities, fell on Friday on weak panamax rates.

The overall index, which reflects daily freight market prices for capesize, panamax, supramax and handysize dry bulk transport vessels, fell 0.89 percent to 669 points, levels not seen since February.

The index has lost about 4 percent this week.

The panamax index fell 2.92 percent to 599 points, with average daily earnings down $140 at $4,758. Panamaxes typically transport 60,000-70,000 tonne cargoes of coal or grains.

"The Atlantic market has completely collapsed with transatlantic trips down 30 percent week over week to $3,700," RS Platou Markets said in a note.

"Ballasting vessels from the East have pressured supply at the same time as grain and soybean exports slowed."

The Baltic's capesize index remained flat from Thursday at 1,186 points.

Average daily earnings for capesizes, which usually transport 150,000 tonne cargoes such as iron ore and coal, were up down $14 at $3,452.

Shanghai steel futures surged up by their 5 percent limit on Friday after state-run media said China has approved infrastructure projects to revive a slowing economy, raising hopes for a recovery in steel 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 up $18 at $6,685, while that of supramax ships were down $49 at $8,703.

(Reporting by NR Sethuraman in Bangalore; editing by Jason Neely)

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