The Baltic Exchange’s dry bulk sea freight index experienced a decline on Wednesday, marking its thirteenth consecutive session of losses and reaching its lowest point in over a month. The index, which tracks the rates for capesize, panamax, and supramax vessels, fell by 83 points or 6.2%, settling at 1,259, its lowest since March 5.
Notably, the capesize index decreased to 1,732, reflecting its lowest level in six weeks. This slump has affected the average daily earnings for capesize vessels, which are typically used for transporting large cargoes of 150,000 tons, such as iron ore and coal.
Earnings dropped by $1,514, bringing the average down to $14,367. Industry analyst Yiannis Parganas from Intermodal’s research department indicated that reduced demand for key commodities, particularly coal sent to China, along with iron ore and grains, is significantly impacting earnings.
Investor sentiment has shifted, with many moving away from U.S. assets that are usually considered safe during uncertain times. Concerns about the economic repercussions of President Donald Trump’s tariffs on trade have led to diminished confidence in traditional safe havens.
China remains the largest importer of both coal and iron ore, essential for its extensive steel production industry. Parganas noted that the proposal for increased U.S. port fees might lead charterers to avoid U.S. regions temporarily.
The Trump administration is reportedly considering adjustments to the proposed fees on ships linked to China, following extensive criticism from industries warning of severe economic consequences. Furthermore, the panamax index fell by 75 points or 5.9% to 1,203, its lowest since March 12, with average daily earnings for panamax vessels dropping to $10,824.
The supramax index also experienced a decline, dropping 6 points or 0.6% to 948, nearing a one-month low.