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 Baltic lunar new year holiday, and a drop in iron ore exports following the Vale dam collapse in Brazil.
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.