Shipping companies, port operators slide as BDI hit two-year low
STOCKS
Shipping companies, port operators slide as BDI hit two-year low
STOCKS

Shipping companies, port operators slide as BDI hit two-year low

 

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Shares of Chinese shipping companies and port operators slid on Monday morning after the Baltic Dry Index (BDI) tumbled for the sixth straight week.

In Hong Kong, Pacific Basic slid 3.7%, OOIL down 3.6% and Cosco Shipping down 2.8%. In mainland China’s A-share market, Chang Jiang Shipping Group Phoenix tumbled 6.5%, China Merchants Port sliding 3.2%. COSCO Shipping down 2.4%, Cosco Shipping Development down 1.4%.

The Baltic Exchange’s main sea freight index last week hit the the lowest level since 2020 weighed down by lower demand for coal and iron ore cargoes as steel output fell in China. The overall index, which factors in rates for capesize, panamax and supramaxshipping vessels, fell about 3.65% last Friday to hit 1,082, a fresh new low in more than two years, after slumping 7.4% one day earlier, which was the worst one-day loss in more than three months. The index tumbled 15.4% last week, sliding for the sixth consecutive week.

Analysts say that current uncertainties in the global economy, along with the much higher commodity prices, especially for coal, are not doing the market any favours. Crude steel output from China, the world’s top producer and consumer of the metal, dropped 6.4% to 81.4 million tonnes in July, World Steel Association data showed on Tuesday.