Why is global shipping stuck in the doldrums?
- The Baltic Dry Index, which tracks the movement of bulk commodities like coal, food grains and iron ore, is down 58 per cent in the last 12 months.
Disruptions in energy markets linked to a global growth recession have had a huge impact on the shipping industry. The container trade, which mostly caters to consumer demand as well as transporting machinery, is instituting what is known as “tactical cancelled sailings" in response to low demand. At the same time, the tanker trade is enjoying abnormally high contract rates.