Baltic Dry Index Drops for 7th Day as Holidays Sap Cargo TradingAlaric Nightingale
The Baltic Dry Index, a measure of shipping costs for coal, iron ore and grains, fell for a seventh session as public holidays around the world curbed cargo trading.
The gauge fell 0.1 percent to 862 points today, according to the Baltic Exchange in London. Rates advanced for Capesizes, the largest tracked, and Handysizes, the smallest, while costs declined for Panamaxes and Supramaxes, the two vessel classes in between that the bourse tracks.
While holidays in China and Europe limited trading today, rates for Panamaxes may reverse declines because some of the vessels remain delayed in Brazil, Alex Gray, chief executive officer of Clarkson Securities Ltd., said by phone today. Demand for Capesizes normally declines in May, June and July, meaning rates for those vessels won’t rally until later this year, he said.
“We’ve probably pushed down too far,” Gray said about the Panamax market. “The pressure from congestion and delays will come to the forefront again. We are beginning to see resistance coming in again.”
Capesize prices rose 2.3 percent to $4,997 a day, according to the Baltic Exchange’s data. Handysizes rose 0.2 percent to $8,038. Panamaxes, which are the largest to navigate the Panama Canal, slid 1 percent to $8,129; Supramaxes lost 0.5 percent to $9,239.