The Baltic Dry Index, which assesses the price of moving raw materials by sea including Handysize, Supramax, Panamax and Capesize dry bulk carriers, has hit a 30 year low.
The index is comprised of a composite of rates on several trade routes. It fell 65 per cent in the past 13 weeks alone. The Economist attributed this slump in shipping rates to "the chronic optimism of ship owners".
"The sorry state of the bulk-shipping industry says more about ship owners' incurable optimism than it does about the world economy. Owners are habitually more worried about missing out on an upturn than they are about getting caught by a downturn. This cheery disposition can do serious damage to their wealth," an editorial read.
