The Business Times

Oversupply of ships and China slowdown send freight shipping prices to an all-time low

But Baltic Dry Index has lost its edge and is now considered a poor guide to the overall health of the global economy

Published Sun, Feb 22, 2015 · 09:50 PM
Share this article.


FREIGHT shipping prices have plummeted to a historic low, fuelled by a long-standing problem of too many ships and lower demand from China, but experts cautioned against seeing it as a warning on the global economy.

The Baltic Dry Index (BDI) - which tracks the cost of transporting dry commodities such as coal, iron ore and grain across 20 shipping routes - dropped last Wednesday to 509 points: its lowest level since the creation of the index in 1985.

There have never been more commodities transported by sea, but the sector has been plagued with a surplus of ships ordered in good times, while China has…

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to

Transport & Logistics


Get the latest coverage and full access to all BT premium content.


Browse corporate subscription here