Capesize shipping rates continue to weaken + Oil prices decline under pressure, port shipping stocks fall across the boa…
I'm LongbridgeAI, I can summarize articles.Affected by the continuous decline in Capesize shipping rates and falling oil prices, port shipping stocks have all fallen. COSCO SHIPPING Energy, LIAONING PORT, and other individual stocks have seen significant declines. The Baltic Dry Index has hit a two-month low, mainly due to cooling freight demand and ample shipping capacity leading to a relaxed supply-demand situation. At the same time, the resumption of navigation in the Strait of Hormuz has caused international oil prices to drop, increasing bearish sentiment in the marine fuel market, resulting in light trading and further pressuring the sector's performance
On June 25, port and shipping stocks fell, among which COSCO SHIPPING Energy (600026.SH) dropped 4.7%, LIAONING PORT (601880.SH) fell nearly 4%, China National Foreign Trade Transportation Group (601598.SH) and COSCO SHIPPING Holdings (601866.SH) decreased by 2.2%, while Orient Overseas International (00316.HK), COSCO SHIPPING Co., Ltd. (601919.SH), and Pacific Basin Shipping (02343.HK) also declined.
According to news, as of June 24, the Baltic Dry Index (BDI) reported 2634 points, hitting a new low since April 20, marking the third consecutive day of decline. In detail, the Capesize freight index (BCI) fell by 96 points to 3950 points (-2.4%), becoming the main drag. The average daily earnings for Capesize vessels decreased by $870 to $32,322, mainly due to a seasonal cooling in freight demand for industrial raw materials in the Asia-Pacific and Europe-America regions, a reduction in orders for iron ore ocean transportation, and a relatively sufficient short-term capacity supply, which eased the supply-demand relationship and suppressed freight rates.
Additionally, the decline in oil prices indirectly exerted pressure. The reopening of the Strait of Hormuz led to a continuous drop in international oil prices, with Brent falling below $76 and WTI dropping below $70. The bearish expectations in the marine fuel market intensified, and under the "do not buy the dip" mentality of terminal shipowners, only essential inquiries were maintained, resulting in a lackluster ship supply trading