Despite the slump of the global shipping market, bulker operators are showing clear signs of recovery. Bulkers refer to vessels designed to transport grains and commodities such as iron ore and coal.
After hitting the bottom in the first half of last year, the bulker shipping market is recovering at a rapid pace in recent days. According to industry sources on March 12, the Baltic Dry Index, the benchmark indicator for the current trend of the bulker shipping market, stood at 1,086 on March 10.
Compared to February 2016 when the index hit a record low at 290, the figure represented a dramatic growth of 274.5 percent.
After rising to 11,793 in May 2008, the index plunged due to the after-effect of the global financial crisis. Thereafter, it continued a downward trend due to the decline in trade volume, the oversupply of fleet capacity, and the plunge in freight rates.
The upturn in the Baltic Dry Index is attributable to the increase in the number of bulker operators who reduced their supply or went bankrupt due to a prolonged slump. email@example.com