Chinese industry analysts attribute the global shipping rate drop to a number of China-related factors, including Beijing’s environmental protection order for the Winter Olympics, China’s reduced steel production, and the easing of port entry disruptions due to COVID-19 that sent shipping rates sky-high last year.
Global rates for large bulk carriers have plunged by 90 percent from last year’s peak. Spot prices for capesize (largest class) bulk carriers fell to $5,826 a day at the end of January, their lowest level in 20 months and well below a 12-year high of $80,000 in October 2021. Bulk carriers mainly carry iron ore, coal, food, and grain.
