Bulk shipping rates to stay low?
Feb. 6, 2012, London - According to a report in Argus Media, the Baltic Exchange Dry Index fell to 662 points last week, to the lowest level in 26 years, after falling every day since December 12 last year. This points to sustained lower bulk shipping rates for things like wood pellets.
The index tracks worldwide international shipping prices of all dry bulk cargoes on Capesize, Panamax, Supramax and Handysize ships, and is often used as an indicator of global trade. But Argus notes that the slump is largely due to a glut of new ships entering the market.
In the Capesize market, traditionally the most volatile, the average of the four main Capesize timecharter routes was at $5,327 yesterday, and has fallen every day for 31 consecutive days since it last peaked at $32,889 on December 12.
See the full article here.