The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for a tenth straight session on Monday as slow business and growing vessel supply battered earnings, Reuters reports. The index fell 1.24 percent or 17 points to 1,359 points in and was at its lowest since March 4.
"Everything is still very subdued," said Peter Norfolk, research director at freight broker FIS. "In the short term the outlook remains fairly negative."
The main index has fallen nearly 20 percent this year as the dry bulk market has struggled with rising ship supply, which has outpaced demand for commodities.
In contrast to dry freight, gold, corn and tin all hit record highs earlier on Monday, supported by a weaker dollar and fears of inflation.
Floods and cyclones in Australia in February hit coal production, and some producers are still struggling to return to normal operations, hurting capesize activity. Weather-related and logistics problems at Brazilian ports have also disrupted iron ore shipments from there.
"The weak export volumes continue to pressure the Pacific market and have flooded the Atlantic with available tonnage," Deutsche Bank said.
"Until (there is) a return of Australian export volumes, we do not expect to see a material increase in rates, especially for capesize and panamax tonnage."
Brokers said the smaller panamax market, which had provided modest support in the past two weeks, was also softening, which was adding to the negative tone.
The devastating March 11 earthquake and tsunami in Japan, a major importer of dry bulk commodities including iron ore and coal, have also weighed on freight activity.
The Baltic's capesize index .BACI fell 1.36 percent, with average daily earnings falling to $7,608 and was at its lowest March 8. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"Bunker costs are limiting (capesize) earnings," said Arctic Securities analyst Erik Nikolai Stavseth.
The Baltic's main index, which tracks the cost of shipping key commodities such as iron ore, cement, grain and coal, has halved in the past six months and languished at just over 1,500 points, close to levels last seen during the financial crisis in 2008.
The Baltic's panamax index .BPNI fell 1.89 percent, with average daily earnings falling to $13,343. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
"It was ugly in the panamax sector (last week) as grain houses and miners appear to have their cargo needs covered by short-term period charter-ins, leaving little spot business for unemployed ships," Cantor Fitzgerald said.
"Everything is still very subdued," said Peter Norfolk, research director at freight broker FIS. "In the short term the outlook remains fairly negative."
The main index has fallen nearly 20 percent this year as the dry bulk market has struggled with rising ship supply, which has outpaced demand for commodities.
In contrast to dry freight, gold, corn and tin all hit record highs earlier on Monday, supported by a weaker dollar and fears of inflation.
Floods and cyclones in Australia in February hit coal production, and some producers are still struggling to return to normal operations, hurting capesize activity. Weather-related and logistics problems at Brazilian ports have also disrupted iron ore shipments from there.
"The weak export volumes continue to pressure the Pacific market and have flooded the Atlantic with available tonnage," Deutsche Bank said.
"Until (there is) a return of Australian export volumes, we do not expect to see a material increase in rates, especially for capesize and panamax tonnage."
Brokers said the smaller panamax market, which had provided modest support in the past two weeks, was also softening, which was adding to the negative tone.
The devastating March 11 earthquake and tsunami in Japan, a major importer of dry bulk commodities including iron ore and coal, have also weighed on freight activity.
The Baltic's capesize index .BACI fell 1.36 percent, with average daily earnings falling to $7,608 and was at its lowest March 8. Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
"Bunker costs are limiting (capesize) earnings," said Arctic Securities analyst Erik Nikolai Stavseth.
The Baltic's main index, which tracks the cost of shipping key commodities such as iron ore, cement, grain and coal, has halved in the past six months and languished at just over 1,500 points, close to levels last seen during the financial crisis in 2008.
The Baltic's panamax index .BPNI fell 1.89 percent, with average daily earnings falling to $13,343. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
"It was ugly in the panamax sector (last week) as grain houses and miners appear to have their cargo needs covered by short-term period charter-ins, leaving little spot business for unemployed ships," Cantor Fitzgerald said.
