Yesterday the Baltic Dry Index, the Baltic Exchange’s main dry bulk shipping index, closed lower due to reduced demand for Capesize and Panamax vessels.
The Zero-Covid policy, which has been stepped up over the last few days to counter the new wave of infections recorded in China, has reduced the productivity of many Chinese steel mills, negatively affecting the demand for iron ore by the world’s largest steel producer.
The overall index, which takes into account the freight rates applied by all types of dry bulkers, including the smallest (Supramax), was down 40 points this week, – 2%, to 1,904 points. This is the lowest ever recorded since March 29th.
The capesize index plunged 95 points,- 4%, to 2,246 points. Average daily earnings for these vessels, which carry 150,000 tonne cargoes such as iron ore and coal, fell by $788, to $18,630.
The panamax index was down 32 points to 2,196. Average daily earnings for these ships, which carry coal or grain cargoes ranging from 60,000 to 70,000 tonnes, fell by $285, to $19,763.
The Supramax index remained stable at 1,714.
Translation by Giles Foster