Baltic Exchange under pressure
As Reuters reported in a recent analysis, the Baltic Exchange’s main sea freight index is currently strongly affected by weaker demand across vessel segments. The Baltic index, which tracks rates for capesize, panamax and supramax vessels ferrying dry bulk commodities, fell last week by 47 points or 7.5%, to 576 points, the lowest level since early February.
The capesize index went down by 118 points, or 36.3%, to 207. The index thus registered its 30th consecutive session of losses. In March 2017, the Baltic Exchange was on a two-year high.
"The market for capesize vessels has turned from bad to worse as prices for low-sulphur fuel oil remain high whilst freight rates deteriorate further,” ship broker Fearnleys was quoted. The panamax index declined by 46 points, or 6.1%, to 714 points. The supramax index decreased by 4 points to 546 points. (mw)