* Capesieze index falls again
* Panamaxes firm on coal fixtures
* Market seen remaining flat for the week
By Krishna N Das
BANGALORE, July 25 The Baltic Exchange's main
sea freight index , which tracks rates to ship dry
commodities, fell for the 12th straight session on Monday as
rates for capesizes remained low due to a lack of iron ore
The index, which gauges the cost of shipping commodities
including iron ore, cement, grain, coal and fertiliser, fell 6
points, or 0.45 percent, to 1,317 points. The index has been
erratic this year, trading between 1,300 and 1,500 points as
ship oversupply outpaces demand to ship commodities.
"We have seen a drop in activity especially from iron ore
cargo, mainly due to drop in demand compared with about four
weeks ago," said George Lazaridis, head of research with Greek
Spot iron ore prices were steady on Monday as traders looked
for clearer direction on the market at the beginning of the
week, amid increasing reluctance to buy the raw material at
rising prices and easing Shanghai rebar futures.
The Baltic's capesize index fell 0.76 percent, with
average earnings down at $10,616. Rates for capesizes, which
typically haul 150,000 tonne cargoes such as iron ore and coal,
decreased 19.2 percent to $9,973 last week as too many ships
chased too few cargoes.
"The dry bulk shipping market is likely to remain
challenging for the foreseeable future, given the significant
number of new shipyard deliveries," Jefferies analyst Douglas
Even though low capesize rates have impacted panamax
earnings too, they have remained steady due to higher coal
On Monday, the Baltic's panamax index rose 0.33
percent, with average daily earnings at $12,301.
"We have seen a lot of coal activity in general... but grain
activity remains fairly minimal compared with last year,"
The growth in trade of major bulk shipments is expected to
slow to 3.5 percent this year from 12 percent last year, Wells
Fargo said in a note, adding trade in minor bulk goods is
expected to increase by about 5 percent.
"While the Pacific Panamax and Supramax market continues to
under perform the Atlantic, ballasters to the Atlantic could
help normalize the rate differential," Deutsche Bank analyst
Justin Yagerman said in a note.
Intermodal's Lazaridis expects the market to remain like
this for the end of the week as well.
"We don't really expect any big changes, both positive and
negative... capesize index could continue to fall," he said.
(Editing by James Jukwey)