The Baltic Exchange’s dry bulk sea freight index, which tracks rates for vessels transporting dry bulk commodities, fell to a one-month low on Tuesday, weighed down by a decline in capesize vessel rates.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, dropped 5 points, or 0.4%, to 1,431 points. The contract hit its lowest level since June 3.

The capesize index fell 74 points, or about 4.1%, to 1,751. The contract was down for a sixteenth straight session.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, decreased $611 to $14,521.

Iron ore futures prices rebounded on Tuesday, supported by resilient near-term demand in top consumer China, although caution triggered by U.S. President Donald Trump’s threat of higher tariffs capped gains.

Trump on Monday warned that steep U.S. tariffs would take effect from August 1, targeting both major suppliers like Japan and South Korea and smaller trade partners. On Tuesday, Japan and South Korea said they would seek talks with Washington to ease the impact.

The panamax index rose 38 points, or 2.5%, to 1,569, marking its highest level since August 12 last year.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained $344 to $14,121.

Among smaller vessels, the supramax index added 25 points, or 2.3%, to 1,125.
Source: Reuters