The seaborne freight business is bearing the brunt of the slowing global economy, with spot shipping rates for capesize vessels, which transport bulk commodities including iron ore, coal and aluminum, plummeting as low as $8,200 a day on 7 February, slipping $500 from the day before. In comparison, last year's daily rates were around $20,000, while breakeven prices are $15,000, according to brokers. Shipping companies have been struggling since the start of this year, when they began reporting record losses in their core business, but it has become more acute because of the slowdown in China and other emerging markets.
The seaborne freight business is bearing the brunt of the slowing global economy, with spot shipping rates for capesize vessels, which transport bulk commodities including iron ore, coal and aluminum, plummeting as low as $8,200 a day on 7 February, slipping $500 from the day before. In comparison, last year's daily rates were around $20,000, while breakeven prices are $15,000, according to brokers. Experts attribute the slowdown to the US-China trade war, the Chinese lunar new year holiday, and a drop in iron ore exports following the Vale dam collapse in Brazil.