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Baltic Dry Index Ends Week Lower Despite Capesize-Led Gain on Friday
Summary
The main sea freight index for dry bulk commodities rose on Friday, supported by stronger rates for larger capesize vessels, but the gains were not enough to prevent a significant weekly decline.
The Baltic Exchange's main dry bulk sea freight index rose for a second consecutive session on Friday, lifted by an uptick in rates for larger capesize vessels. However, the index concluded the week with a notable loss, highlighting persistent weakness in the shipping market.
The composite Baltic Dry Index (BDI), a key indicator of global economic health based on shipping costs for raw materials, gained 8 points, or 0.3%, to settle at 3,148, according to data from the exchange.
Segment Performance
Strength in the capesize segment was the primary driver behind Friday's modest increase. Capesize vessels are the largest class tracked by the index and are mainly used for transporting iron ore and coal.
- The capesize index climbed 32 points, or 0.6%, to 5,042.
- Average daily earnings for these ships, which typically carry 150,000-ton cargoes, increased by $296 to $42,228.
AdConversely, rates for mid-sized vessels softened. The panamax index, which tracks ships that carry 60,000 to 70,000 tons of coal or grain, fell 7 points, or 0.3%, to 2,372. Average daily earnings for panamaxes decreased by $58 to $21,349.
Weekly Context
Despite the gains on Thursday and Friday, the broader weekly performance was negative. The main BDI registered a steep decline of 8.1% for the week.
The capesize index was the primary drag on the weekly figure, plummeting by 12.8% over the five-day trading period. The panamax index recorded a more modest weekly loss of 1.5%.
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