Returns for Capesize vessels that haul iron ore fell to the lowest in two weeks because of a surplus of ships and slowing demand.
Rents for the ships that transport at least 150,000 metric tons of cargo declined 0.6 percent to $5,786 a day, the lowest since Feb. 24, according to data from the London-based Baltic Exchange today.
Slowing demand for cargoes and the surplus of available vessels is spurring the decline in rates, RS Platou Markets AS, an Oslo-based investment bank, said in an e-mailed note today. Declining congestion at ports in China, Brazil and Australia is adding vessels to the market, swelling supply, it said.
Capesizes are the largest vessels within the Baltic Dry Index (BDIY), a broader measure of shipping costs. The index advanced for a 12th straight session, increasing by 1.5 percent to 824, the data show.
Daily returns for Panamaxes, the biggest ships that can navigate the Panama Canal, advanced 1.8 percent to $7,129 a day, according to the exchange today. Supramax (BSRATCR) rates added 2.8 percent to $9,035. Handysizes (BHSATCR), the smallest ships in the gauge, rose 1.2 percent to $7,106, the highest price in seven weeks, the exchange data show.
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