Shipping firms hit as freight index for raw materials fall
Shares of shipping services firms were badly beaten Wednesday after the Baltic Exchange's chief sea freight index for global raw material fell 2.19 percent to 9,379 points. The index hit an all-time high of 11,793 points on May 20.
By ET Online |
MUMBAI: Shares of shipping services firms were badly beaten Wednesday after the Baltic Exchange's chief sea freight index for global raw material fell 2.19 percent to 9,379 points. The index hit an all-time high of 11,793 points on May 20.
At 1pm, shares of Varun Shipping fell 1.74 per cent, Aban Offshore lost 3.93 per cent, Great Offshore retreated 5.53 per cent and Essar Shipping shed 4.91 per cent.
Ninety percent of the world's traded goods, including vital natural resources, are moved by sea. Dealers said that due to higher commodity prices, shipments will slow down and with higher crude oil prices, offtake will fall, and in turn, freight rates should correct.
At 1pm, shares of Varun Shipping fell 1.74 per cent, Aban Offshore lost 3.93 per cent, Great Offshore retreated 5.53 per cent and Essar Shipping shed 4.91 per cent.
Ninety percent of the world's traded goods, including vital natural resources, are moved by sea. Dealers said that due to higher commodity prices, shipments will slow down and with higher crude oil prices, offtake will fall, and in turn, freight rates should correct.
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