The Baltic Exchange's dry bulk sea freight index ticked down on Thursday as weakness in the capesize vessel segment overshadowed higher rates for smaller vessels.

The overall index .BADI , which factors in rates for capesize, panamax, and supramax shipping vessels, was down 8 points, or 0.5%, to 1,499.

"Lower than expected economic activity in China and a faster decline in the coal trade than forecast are the two largest downside risks for the sector," said BIMCO's Chief Shipping Analyst Niels Rasmussen in a quarterly note.

"Conversely, upside risks include increased avoidance of the Red Sea and a smaller than expected decline in coal volumes."

The capesize index .BACI lost 59 points, or 2.8%, to a one-week low of 2,086.

Average daily earnings for capesize vessels .BATCA , which typically transports 150,000-ton cargoes such as iron ore and coal, decreased by $489 to $17,298.

Iron ore futures were mixed, with the Dalian benchmark extending gains on expectations of a boost to the Chinese economy following the central bank's stimulus move, while Singapore prices drifted lower.

The panamax index .BPNI rose for the ninth consecutive session, adding 27 points, or 1.6%, to a three-week high of 1,690 points.

Average daily earnings for panamax vessels .BPWT , which usually carries about 60,000 to 70,000 tons of coal or grain cargo, was up by $241 to $15,209.

Limited demand growth would impact the panamax segment, where a significant decline in coal shipments could lead to weaker rates, Rasmussen noted.

Among smaller vessels, the supramax index .BSIS rose 12 points to 1,062, logging a third straight daily rise.

Source: Reuters