Volatility on the Baltic Dry Index (BDI) - a benchmark indicator for transporting raw materials by sea - has subsided in the past 12 months compared with the preceding year reaching highs of only 2,648 compared with 4,507.
Along with lower volatility, rates have also fallen compared with last year due to natural disasters in Australia and Japan as well as continuing economic storms, which may short circuit rising industrial mineral demand from developing countries.
“The dry bulk market has experienced a dramatic fall in rates during 2011. So far this year, Capesizes have earned only 40% of what they made during the first three quarters of last year,” ship broker RS Platou said. “For the smaller dry cargo ships the fall in rates has not been so dramatic but still significantly below the level recorded in 2010.”
But 2011 may be the year...