The Baltic Exchange's main sea freight index, which tracks rates to ship dry commodities, fell to a more than 25-year low on Wednesday as a slump in cargo business and a mounting glut of vessels battered sentiment.
The overall index fell 18 points or 2.65 percent to 662 points, falling below the 663 point low hit on Dec. 5, 2008 during the financial crisis and its lowest since 1986.
"Despite the return of Chinese players from holidays, fixture activity has so far failed to recover," RS Platou Markets analyst Frode Morkedal said.
"We note almost non-existent spot bookings in line with the past weeks, likely a result of a wait-and-see stance being adopted by charterers.
Tonnage lists continue to expand, postponing any major recovery in rates.
The shipping sector in coming months is expected to face a supply glut and glum economic outlook, including concerns over Chinese demand for raw materials, which will pressure earnings. More...
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