Global shipping rates are set to fall by 74 per cent this year as commodity demand continues to fall in Asia and the massive glut of vessels ordered during the boom years finally takes to the seas, the Telegraph reported. The expected collapse in rates, which could push dozens of shipowners close to bankruptcy, comes after a 92 per cent decline in the Baltic Dry Index (BDI) of shipping rates over the course of last year. The misery is expected to continue well into 2010, with a further 15 per cent drop in rates before any rebound brings relief to fleet-owners.

This entry was posted by Stacy-Marie Ishmael on Thursday, April 9th, 2009 at 4:35 and is filed under Capital markets, Commodities. Tagged with Baltic Dry index, shipping. Edit this entry.