Freight rates for shipping dry bulk materials slumped this week due to a decrease in Chinese coal demand and ongoing uncertainty in 2010 iron ore contract talks between Chinese steel mills and global miners.
The Baltic Dry Index (BDI) was 2673 on 3 February 2009, compared with 2963 last week and over 3200 at the beginning of the year. Capesize, Panamax, Supramax, and Handysize were 3309, 3100, 2186, and 1126, respectively.
Rates fell as Chinese demand for coal began to decline as the worst winter for over 50 years began to pass, reducing the need for heating fuel and power.
According to data...