Global glut drives Baltic Dry Index to 25-year low, grim year expected Saturday, 04.Feb.2012, 11:14 (GMT+3) THE Baltic Dry Index fell to its lowest point in level since August
1986, extending the streak of daily declines from December 12, a decline
of 65 per cent, reports London's Financial Times.
THE Baltic Dry Index fell to its lowest point in level since August
1986, extending the streak of daily declines from December 12, a decline
of 65 per cent, reports London's Financial Times.
The index dropped 18 points to 662 midweek, falling below the 666 level
recorded on December 4, 2008 when bulk shipping demand collapsed in the
financial crisis.
Widely seen as a barometer of global trade, the decline is attributed to
overcapacity as newbuildings flood the market, outpacing demand and
depressing rates.
Said Oslo's Arctic Securities analyst Erik Nikolai Stavseth: "I find it deeply worrying."
Said Clarkson analyst Guy Campbell: "It's finally upon us."
Mr Campbell said 2012 would prove a "pretty grim year", estimating that
freight demand would grow 5.5 per cent this year while capacity would
increase 12 per cent.
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