July 25 (Reuters) - The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry commodities, fell on Wednesday due to falling activity rates for both capesize and panamax.
The overall index, a gauge of the cost of shipping commodities such as iron ore, cement, grain, coal and fertiliser, fell for the 12th straight day, down 21 points or 2.09 percent to 982 points.
The Baltic’s capesize index dropped 1.7 percent to 1,239 points. The average daily earnings for the larger capesize vessels, which typically transport 150,000-tonne cargoes such as iron ore and coal, fell 3.6 percent or $190 to $4,969.
“The dry bulk market remains very weak, with capesize spot rates below cash breakeven levels near $6,000/day, stemming largely from the oversupply of tonnage and moderating Chinese demand,” Wells Fargo analyst Michael Webber said in a note to clients.
The Baltic’s panamax index fell 1.9 percent to 1,088 points, with average daily earnings down $165 to $8,682.
The main index, which factors in the average daily earnings of capesize, panamax, supramax and handysize dry bulk transport vessels, has fallen more than 43 percent this year. (Reporting By Shruti Chaturvedi; Editing by Alison Birrane)