Baltic index drops to record low

Reuters are reporting that the Baltic Exchange's main sea freight index registered a new all-time low on 8 February on muted vessel demand.

The overall index, which gauges the cost of shipping dry bulk including cement dropped four points to 293 points.

The index has not risen in a single session this year, dropping nearly 40% and touching fresh lows in 24 of the 26 sessions.

A slowdown in the Chinese economy, which expanded at its slowest pace in a quarter of a century in 2015, and a huge over-capacity in vessels have hit the index hard.

Average daily earnings for capesize vessels, which typically transport 150 000 t cargoes fell US$43 to US$2781.

Edited from source by Joseph Green. Source: Reuters

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