Industrial Minerals


Shipper charters vessel for free on freight slump

09 February 2012


Baltic Dry Index finds bottom as some vessel owners lease ships for nothing

The cost of sea-borne dry bulk transportation finally steadied this week after rates fell nearly 85% in two months.

 

Rates had become so dire, shippers even allowed vessels to chartered for nothing, and helped paid for fuel.  This indicated the market had found the bottom and that ship owners would not let rates lower any further or else face bankruptcies.

 

The Baltic Dry Index (BDI) was 676 on 8 February compared to 622 on 1 February, finally rebounding from 26 years lows. Capesize, Panamax, Supramax, and Handysize were 1448, 828, 620, and...