The Baltic Dry Index (BDI) dropped by another eight points reaching its new record low at 522 points on Monday.
The Baltic Dry Index has fallen close to 50% over the past 12 months.
The Baltic Capesize Index fell to 614 points, 16 points lower than last reported, whereas Baltic Supramax Index stood at 480 points, 6 points lower.
Only Panamaxes seem to be holding out with the index at 505 points, recording a 6-point rise.
The BDI’s downturn has seen dry bulk vessel owners left in dire conditions, especially since there are no signs of recovery any time soon.
The recovery of the index seems to be further delayed as China enters its New Year festivities pulling a break on its bulk imports.
As a result, the earnings have dwindled across the board, resulting in almost nonexistent interest in the newbuilding market, according to Allied Maritime Research.
It is feared that the continued decline may have a ripple effect on bulk owners causing bankruptcies as shipping rates plunge even further.
Danish shipping company Copenship A/S was forced to file for bankruptcy amid losses in the dry bulk sector triggered by low freight rates.
World Maritime News Staff