The Baltic Exchange Dry Index dropped 4.3% to 2,769 on Thursday (Nov. 4), its lowest level in five months. The index which provides a benchmark for the price of moving the major raw materials by sea, extended losses for the 11th straight session, dragged by weaker rates across its vessel segments as demand wanes.
The Baltic Dry Index (BDI) issued daily by the London-based Baltic Exchange, is a composite of three sub-indices that measure different sizes of dry bulk carriers: Capesize, Panamax and Supramax.
Capesize vessels are the largest dry bulk marine option and typically transport coal, iron ore, and commodity raw materials cargoes of about 150,000 tonnes. The capesize index was off 1.7% to 3,221, the lowest since June 10. Average daily earnings for capesizes fell $452 to $26,710.
Panamax vessels usually carry coal or grain cargoes of about 60,000 to 70,000 tonnes. These vessels each have seven cargo holds and are designed to fit the locks of the Panama Canal. The panamax index plunged 5.6% to 3,166, its lowest since June 9.
“All routes are down due to lack of demand, and a growing tonnage list in both hemispheres,” Oslo-based  international shipbroking company Fearnleys said in a weekly note, referring to the decline in panamax rates. “But we do believe we will find a logical bottom very soon,” the 152 year-old company added. Average daily earnings for panamaxes declined $1,699 to $28,492.
Supramax are medium-sized vessels with a carrying capacity between 48,000 and 60,000 DWT. Because of their smaller size, Supramax vessels can enter and exit smaller ports.
The supramax index fell by 165 points to 2,563, its weakest since June 10.
BDI which takes into account 23 different shipping routes carrying coal, iron ore, grains and many other commodities, hit a temporary peak on May 20, 2008, reaching 11,793. The lowest level ever reached was on the 10th of February 2016, when the index dropped to 290 points.
With reporting by Reuters, Hellenic Shipping News
