Baltic Dry Index tumbles to new all time low of 467 points
by Azimuth Support Team on 01/06/16
The Baltic Exchange’s main sea freight index, tracking rates for ships carrying industrial commodities, slumped to an all-time low on Tuesday 1/5/16, as worries over demand from top importer China and huge oversupply of vessels battered sentiment.
The overall index, which gauges the cost of shipping dry bulk cargoes including iron ore, cement, grain, coal and fertilizer, was down 5 points, or 1.06 percent, at 467 points, the lowest in records that date back to January 1985.
The dry bulk shipping downturn began in 2008, after the onset of the financial crisis, and has worsened significantly in recent months as the Chinese economy has slowed, meaning less appetite for iron ore, coal and other commodities.