THE Baltic Dry Index, often seen a global economic baromenter, fell
below 1,000 for the first time since January 2009 on expectations that
iron ore demand in China, combined with a growing oversupply of ships,
reports Bloomberg.
This extends a 12-month decline to 44 per cent, according to data from London's Baltic Exchange. Charter rates dropped for all four vessels types within the gauge, led by capesizes, which declined 8.3 per cent.
Kasper Moller, director of shipbroker Maersk Broker Asia in Beijing, said weakening Chinese demand for iron ore is slowing charters. "If the Chinese market just takes its foot off the accelerator for a second, it has an immediate impact. We're having a lot of new ships being delivered, too," he said.
This extends a 12-month decline to 44 per cent, according to data from London's Baltic Exchange. Charter rates dropped for all four vessels types within the gauge, led by capesizes, which declined 8.3 per cent.
Kasper Moller, director of shipbroker Maersk Broker Asia in Beijing, said weakening Chinese demand for iron ore is slowing charters. "If the Chinese market just takes its foot off the accelerator for a second, it has an immediate impact. We're having a lot of new ships being delivered, too," he said.