 |
| Freight rates have fallen to levels never seen before, 60% since August, and are currently 25% below the worst days of 2008. The Baltic Exchange’s main sea freight index (BDI), which gauges the cost of shipping cargoes including iron ore, cement, grain, coal and fertilizer, fell to 551 points yesterday. Historically, the Baltic Exchange Dry Index reached an all-time high of 11,612 in August 2008 and a record low of 498 in November of 2015. Unlike stock and bond markets, the BDI is totally devoid of speculative content and reflects the real economy, since people don't book freighters unless they have cargo to move. |