The Baltic Dry Index has just kicked off the worst start to the year in over 30 years

The Baltic Dry Index has just kicked off the worst start to the year in over 30 years. At 1,395, the the Baltic Dry index, which reflects the daily charter rate for vessels carrying cargoes such as iron ore, coal and grain, is now down 18% in the last 2 days alone (biggest drop in 6 years), back at 4-month lows. The fall comes in the wake of new environmental rules on ship loading in Colombia, the world's fourth-largest supplier of seaborne thermal coal. Rates for Capesize ships, which are also tracked by the Baltic Exchange and can carry at least 150,000 tonnes of coal, iron ore and other cargoes fell 17 per cent to $17,452 a day, the biggest daily drop since October 2008. With iron ore inventory levels at a two year high there seems little incentive for steel mills to maintain purchasing appetite. (VIEW LINK)