The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry bulk commodities, fell to an over one-month low on Friday, as vessel rates weakened across the board.

The main index, which factors in rates for capesize, panamax and supramax shipping vessels, extended losses for the third straight session and was down 48 points, or 2.3%, to 2,023 points, its lowest since November 5. The contract was down over 8% this week.

The capesize index lost 51 points, or about 1.4%, to 3,624 points, its lowest level in one month. The contract fell over 2% this week.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased by $428 to $30,052.

Iron ore futures prices traded in a tight range, but were set to end the week higher, supported by expectation that steelmakers in top consumer China will accelerate feedstock restocking ahead of the Lunar New Year holiday in February.

Danish shipping company Maersk said that one of its vessels successfully navigated the Red Sea and Bab el-Mandeb Strait for the first time in nearly two years.

Maersk, along with other global shipping companies, had rerouted vessels around Africa’s Cape of Good Hope from December 2023 after Yemen’s Houthi rebels attacked ships in the Red Sea.

“If ships start returning quickly, that could cause short-term disruption — ports flooded with off-schedule ships, congestion, and temporary (vessel) rate spikes. But gradual testing like this won’t have a significant impact (on prices),” said Simon Heaney, senior manager of Container Research at Drewry Shipping Consultants.

The panamax index fell 66 points, or 4.8%, to 1,323 points, its lowest level since June 10. The contract fell 21.6% this week.

Average daily earnings for panamax vessels, which usually carry 60,000 to 70,000 tons of coal or grain, decreased by $597 to $11,908.

Among smaller vessels, the supramax index lost 36 points to 1,222 points. The contract fell about 11% this week.
Source: Reuters