Baltic Dry Index Slides to Lowest Level since 1986

Feb 2 (Reuters) – The Baltic Exchange’s principal sea freight index, which tracks charges for ships carrying dry bulk commodities, continued its slide on Monday, hitting a brand new near-three decade low as charges for all 4 vessel segments fell.

The general index, which elements in common day by day earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, was down 18 factors, or 2.96 p.c, at 590 factors, the bottom since August 1986.

“The dry bulk market has seemingly gone dead silent, with worries circulating amongst many owners that there is little reason to operate vessels under the currently prevailing freight rates,” George Lazaridis, head of market analysis and asset valuations at Allied Shipbroking, stated in an weekly delivery market word revealed on Monday.

The capesize index shed 14 factors, or about 2.06 p.c, to 665 factors.

Average day by day earnings for capesize vessels, which usually transport 150,000-tonne cargoes similar to iron ore and coal, declined $103 to $6,604.

The panamax index was down 28 factors or 5.51 p.c at 480 factors. Average day by day earnings for panamaxes, which often carry coal or grain cargoes of about 60,000 to 70,000 tonnes, slid $230 to $3,830. Both are at their lowest in seven months.

The supramax index was down 18 factors at 567 factors, whereas the handysize index slipped 8 factors to 332 factors. (Reporting by Anupam Chatterjee in Bangalore, enhancing by David Evans)