The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, fell for a third consecutive session on Wednesday due to weaker capesize rates.

The main index, which tracks rates for capesize, panamax and supramax shipping vessels, slipped 37 points, or 1.9%, to 1,927 points, reaching its lowest level since August 5.

The capesize index was down 156 points, or 5.2%, at 2,867 points.
Average daily earnings for capesize vessels, which typically transport
150,000-ton cargoes such as iron ore and coal, dropped by $1,294 to $23,778.

"It seems like the market is currently moving sideways. We saw some reduction in mining activity from Australia. There is a likelihood of impact on Australian mining activity from the Pacific while Atlantic is showing some signs of resilience," said Nikos Tagoulis, research analyst at Intermodal.

Iron ore futures prices declined, pressured by a mandated production cut ahead of a military parade in China and U.S. trade restrictions on steel imports.

On Tuesday, the U.S. Commerce Department said it was hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products.

Meanwhile, the panamax index was up 28 points, or 1.7%, at 1,665.

Average daily earnings for panamax vessels, which usually carry
60,000-70,000 tons of coal or grain, gained $248 to $14,985.

Among smaller vessels, the supramax index added 19 points, or 1.4%, to 1,388.

Source: Reuters (Reporting by Sarah Qureshi in Bengaluru; Editing by Krishna Chandra Eluri)