The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell for an 18th straight session on Thursday as mounting vessel supply continued to hurt sentiment, Reuters reports.
Brokers said an expected strengthening of iron ore imports into China in the second quarter was likely to provide modest support for depressed rates.
The index was down 0.63 per cent or 8 points to 1,254 points, its lowest since Feb 28.
'Due to the supply side, it's difficult to see much improvement in the capes in the near term unless there is some spike in demand for non-fundamental reasons,' said Nigel Prentis, a director with HSBC Shipping Services Ltd.
The main index has fallen over 25 per cent this year as the dry bulk market has struggled with rising ship supply, which has outpaced demand for commodities.
The Baltic's capesize index was unchanged, although average daily earnings inched higher by US$17 to US$6,547.
'Sustained weakness in capesize spot markets have forced a downwards adjustment in both period rates and FFA (freight derivatives) prices,' broker SSY said. 'This is despite an anticipated rebound in iron ore and coal trade.'
Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
The Baltic's main index, which tracks the cost of shipping key commodities such as iron ore, cement, grain and coal, has more than halved in the past six months to below 1,500 points, close to levels last seen during the financial crisis in 2008.
The Baltic's panamax index fell 2.69 per cent, with average daily earnings falling to US$11,024. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
'It is not unlikely that we will see further weakness, judging by the quantity of new tonnage of all size ranges arriving on the market,' broker Braemar Seascope said referring to the panamax market.
The Baltic's smaller handysize index rose 0.38 per cent.
'Greatest resilience has been shown in supramax and, especially, handysize earnings,' SSY said. 'This reflects increased levels of activity across a range of minor bulk trades and, of course, a slower rate of fleet supply growth than in any of the other sizes.'
While there are indications of some vessel cancellations and delays, analysts expect deliveries to gather pace between 2011 and 2012, adding further pressure on dry bulk earnings.
Brokers said an expected strengthening of iron ore imports into China in the second quarter was likely to provide modest support for depressed rates.
The index was down 0.63 per cent or 8 points to 1,254 points, its lowest since Feb 28.
'Due to the supply side, it's difficult to see much improvement in the capes in the near term unless there is some spike in demand for non-fundamental reasons,' said Nigel Prentis, a director with HSBC Shipping Services Ltd.
The main index has fallen over 25 per cent this year as the dry bulk market has struggled with rising ship supply, which has outpaced demand for commodities.
The Baltic's capesize index was unchanged, although average daily earnings inched higher by US$17 to US$6,547.
'Sustained weakness in capesize spot markets have forced a downwards adjustment in both period rates and FFA (freight derivatives) prices,' broker SSY said. 'This is despite an anticipated rebound in iron ore and coal trade.'
Capesizes typically haul 150,000 tonne cargoes such as iron ore and coal.
The Baltic's main index, which tracks the cost of shipping key commodities such as iron ore, cement, grain and coal, has more than halved in the past six months to below 1,500 points, close to levels last seen during the financial crisis in 2008.
The Baltic's panamax index fell 2.69 per cent, with average daily earnings falling to US$11,024. Panamax vessels usually transport 60,000-70,000 tonne cargoes of coal or grains.
'It is not unlikely that we will see further weakness, judging by the quantity of new tonnage of all size ranges arriving on the market,' broker Braemar Seascope said referring to the panamax market.
The Baltic's smaller handysize index rose 0.38 per cent.
'Greatest resilience has been shown in supramax and, especially, handysize earnings,' SSY said. 'This reflects increased levels of activity across a range of minor bulk trades and, of course, a slower rate of fleet supply growth than in any of the other sizes.'
While there are indications of some vessel cancellations and delays, analysts expect deliveries to gather pace between 2011 and 2012, adding further pressure on dry bulk earnings.