The Baltic Exchange’s main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped from a near 15-month high, as capesize rates snapped their four-session gaining streak.

The overall index, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 1.6% or 34 points to 2,071.

The capesize index fell 3.1%, or 116 points, to 3,633, after hitting its highest since late May 2022 in the previous session.

Average daily earnings for capesize vessels, which typically transports 150,000-tonne cargoes carrying commodities such as iron ore and coal, declined $959 to $30,130.

However, market optimism around capesize remained, noted shipbroker Fearnleys in a report from Wednesday.

Iron ore rose futures buoyed by positive investor sentiment on a recovering Chinese economy and lower inventory, though weak-er-than-expected steel output capped gains.

The panamax index rose 1% or 16 points to 1,635, its highest in over two weeks.

Average daily earnings for panamax vessels, which usually carries about 60,000 to 70,000 tonnes of coal or grain, gained $151 to $14,719.

“The spread between Cape and Panamax transatlantic widened, hinting at a spillover from Cape splits to Panamax”, the note add-ed.

Among smaller vessels, the supramax index extended gains to an eight straight session, adding 2 points to 1,287.

Meanwhile, severe drought in the Amazon is forcing Brazilian grain exporters to divert a small number of export cargos to south-ern port terminals instead of northern ports, grain exporters group Anec said on Wednesday.

Source: Reuters reporting by Tina Parate in Bengaluru an edited by Tasim Zahid