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Baltic Dry Index closed at 2225 on Friday. Source: The Baltic Exchange

THE Baltic Dry Index has now reached 2,225 points, recovering from a low of 663 on Dec 5.

That sharp recovery in the
freight rate indicator for the marine transport business, particularly in dry-bulk shipping,
does spell relief for dry bulk companies.

They, nevertheless, continue to face severe issues. With a major
orderbook being unleashed onto the market, there will be an overwhelming overcapacity and unprofitability that could even threaten the banks that financed the newbuilding.
 
M
ore than 3,000 bulk carriers are on order at 155 different yards in 15 countries by 479 known owners. All are scheduled for delivery by 2011. 


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