Baltic Dry Index 2004-23OCT08: Bloomberg
The Baltic Dry Index is a standard measure of the cost of moving dry bulk commodities by sea. The drop in 2008 (shown in more detail below) reflects a dramatic decline in the demand for international shipping. This is a 90% decline in this index since May (`Biggest Bubble of Them All' Is Globalization: Chart of the Day )
Bangkok Post reporters note that container demand is also down (Cargo-rate collapse alarms shipping companies):
A.P. Moeller-Maersk A/S, the owner of the world's largest container line, has been prompted to announce a cut of shipping capacity between Asia and Europe by 10% as the global economic meltdown slows demand growth.
Prices for moving sea-cargo containers have tumbled to 10-year lows as US and European consumers reduce purchases from Asean, while shippers have added vessels, resulting in steadily declining estimates for Asia-Europe market freight rates.
Neptune Orient Lines Ltd, Southeast Asia's largest shipping company, has also announced plans to slash capacity on the Europe route by 25%.
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