May, reports Hellenic Shipping News.
The halt in dry bulk trade is the aftermath of the financial and credit crisis which hit the world markets from the middle of September. Banks are hesitant in releasing letters of credit, traders are reluctant to take
chances and the global steel industry is also witnessing a drop in demand.
Therefore, cargoes are scarce, demand for ore carriers has slumped and as a result freight rates have too.
Clarkson’s latest weekly report said that “prevailing turmoil in the financial markets and steadily declining freight indexes have also left the second hand market in a continued state of disquiet”. It continues by stating that concluded arrangements for vessels at prices difficult to justify in the light of the current financial and trading climate are renegotiated or falling altogether.
