The Baltic Exchange’s main sea freight index, which monitors rates for vessels moving dry bulk commodities, fell for the seventh straight session on Thursday, weighed down by lower demand for capesize vessels.

The main index dropped to its lowest point since June 3, shedding 9 points, or 0.6%, to 1,434 points.

The capesize index slipped 64 points, or 3.3%, to 1,894 points, reaching its lowest point since May 28.

Average daily earnings for capesize vessels, which typically transport 150,000-ton cargoes such as iron ore and coal, dropped by $537 to $15,705.

Iron ore futures rose to a more than one-month high, driven by China’s renewed push to curb low-price competition and cut excess industrial capacity.

On Tuesday, China’s top leaders pledged to step up regulation of aggressive price-cutting by Chinese companies, state news agency Xinhua reported, as the world’s second-largest economy struggles to shake off persistent deflationary pressures.

Meanwhile, the panamax index was up 15 points, or 1%, to 1,507 points.

Average daily earnings for panamax vessels, which usually carry 60,000-70,000 tons of coal or grain, gained $141 to $13,565.

Among smaller vessels, the supramax index climbed to an over-seven month peak, rising 21 points to 1,052 points.
Source: Reuters