The Baltic Exchange’s dry bulk sea freight index dropped on Tuesday, hovering around a 2-1/2-month low hit in the previous session, on lower rates across vessels as rising COVID cases in China dented demand.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels carrying dry bulk commodities, dropped 28 points, or about 2.4%, to 1,149, its lowest since Sept. 7.

The capesize index hit its lowest in more than two months and lost 37 points, or 3.3%, to 1,092.

Average daily earnings for capesizes, which typically transport 150,000-tonne cargoes of coal and steel-making ingredient iron ore, decreased $306 to $9,057.

“It will take some time, and heftier shifts in market fundamentals, before the (capesize) market can actually return on an improved track in the near term,” shipbroker Allied said on the declining rates for capesizes in a note dated Monday.

The panamax index shed 53 points, or 3.4%, to a more than 11-week low of 1,496.

Average daily earnings for panamax vessels, which usually carry coal or grain cargoes of about 60,000 tonnes to 70,000 tonnes, decreased $474 to $13,463.

The supramax index lost 4 points to 1,160, at its lowest since early February 2021.

Iron ore futures dropped as rising COVID cases in the world’s top steelmaker China fanned demand concerns.

Source: Reuters