World Grain - December 2008 - 26

FEATURE

Freight rates
plummet
N

o one would deny the grain industry has suffered its
share of peaks and valleys during the past two years.
The rapid price increases of 2007-08, which saw the
cost of food soar and left many people in poorer countries facing the threat of unaffordable supplies, have been followed by
bumper global crops and rapidly falling world prices.
The declining cost of oil and other commodities might now
be spurring the downward trajectory of grain prices by cutting
input costs such as fertilizer and fuel, but this was preceded
by rampant inflation. Traders and producers have also been
plagued by a welter of credit issues amid the fallout of the
global banking crisis, which has also affected both futures
markets and currency planning.
But the flux that has taken place in the international grain
markets is relatively mild compared to the volatility being
experienced in the bulk shipping sector, the "facilitator" of
global grain trade. The export prices of wheat, maize, rice
and soybeans on some routes have almost halved in the last
six months, but that loss in value is nothing compared to the
26

by Michael King

Bulk carrier shipping sector has seen
record highs and lows in the space
of just six months
cataclysm which has astonished owners and operators of bulk
carriers who, it should be said, had been enjoying a five-year
run of unprecedented earnings and corresponding hikes in asset values.
BALTIC INDEX FALLS 90%
Bulk carrier freight rates have, quite simply, fallen off a
cliff. The Baltic Exchange Dry Index (see chart), which tracks
freight rates for the entire bulk carrier fleet of almost 7,000
vessels, lost some 90% of its value between the record highs
December 2008 / World Grain / www.World-Grain.com


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World Grain - December 2008

Table of Contents for the Digital Edition of World Grain - December 2008

Contents
World Grain - December 2008 - 1
World Grain - December 2008 - 2
World Grain - December 2008 - 3
World Grain - December 2008 - Contents
World Grain - December 2008 - 5
World Grain - December 2008 - 6
World Grain - December 2008 - 7
World Grain - December 2008 - 8
World Grain - December 2008 - 9
World Grain - December 2008 - 10
World Grain - December 2008 - 11
World Grain - December 2008 - 12
World Grain - December 2008 - 13
World Grain - December 2008 - 14
World Grain - December 2008 - 15
World Grain - December 2008 - 16
World Grain - December 2008 - 17
World Grain - December 2008 - 18
World Grain - December 2008 - 19
World Grain - December 2008 - 20
World Grain - December 2008 - 21
World Grain - December 2008 - 22
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World Grain - December 2008 - 24
World Grain - December 2008 - 25
World Grain - December 2008 - 26
World Grain - December 2008 - 27
World Grain - December 2008 - 28
World Grain - December 2008 - 29
World Grain - December 2008 - 30
World Grain - December 2008 - 31
World Grain - December 2008 - 32
World Grain - December 2008 - 33
World Grain - December 2008 - 34
World Grain - December 2008 - 35
World Grain - December 2008 - 36
World Grain - December 2008 - 37
World Grain - December 2008 - 38
World Grain - December 2008 - 39
World Grain - December 2008 - 40
World Grain - December 2008 - 41
World Grain - December 2008 - 42
World Grain - December 2008 - 43
World Grain - December 2008 - 44
World Grain - December 2008 - 45
World Grain - December 2008 - 46
World Grain - December 2008 - 47
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World Grain - December 2008 - 49
World Grain - December 2008 - 50
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World Grain - December 2008 - 55
World Grain - December 2008 - 56
World Grain - December 2008 - 57
World Grain - December 2008 - 58
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World Grain - December 2008 - 60
World Grain - December 2008 - 61
World Grain - December 2008 - 62
World Grain - December 2008 - 63
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World Grain - December 2008 - 65
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World Grain - December 2008 - 67
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World Grain - December 2008 - 69
World Grain - December 2008 - 70
World Grain - December 2008 - 71
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World Grain - December 2008 - 73
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World Grain - December 2008 - 79
World Grain - December 2008 - 80
World Grain - December 2008 - 81
World Grain - December 2008 - 82
World Grain - December 2008 - 83
https://digital.world-grain.com/sosland/wg/world-grain-december-2024
https://digital.world-grain.com/sosland/wg/world-grain-november-2024
https://digital.world-grain.com/sosland/wg/world-grain-october-2024
https://digital.world-grain.com/sosland/wg/world-grain-september-2024
https://digital.world-grain.com/sosland/wg/world-grain-august-2024
https://digital.world-grain.com/sosland/wg/world-grain-july-2024
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https://digital.world-grain.com/sosland/wg/world-grain-december-2023
https://digital.world-grain.com/sosland/wg/world-grain-november-2023
https://digital.world-grain.com/sosland/wg/world-grain-october-2023
https://digital.world-grain.com/sosland/wg/world-grain-september-2023
https://digital.world-grain.com/sosland/wg/world-grain-august-2023
https://digital.world-grain.com/sosland/wg/world-grain-july-2023
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https://digital.world-grain.com/sosland/wg/world-grain-april-2023
https://digital.world-grain.com/sosland/wg/world-grain-march-2023
https://digital.world-grain.com/sosland/wg/world-grain-february-2023
https://digital.world-grain.com/sosland/wg/world-grain-january-2023
https://digital.world-grain.com/sosland/wg/world-grain-december-2022
https://digital.world-grain.com/sosland/wg/world-grain-november-2022
https://digital.world-grain.com/sosland/wg/world-grain-october-2022
https://digital.world-grain.com/sosland/wg/world-grain-september-2022
https://digital.world-grain.com/sosland/wg/world-grain-august-2022
https://digital.world-grain.com/sosland/wg/world-grain-july-2022
https://digital.world-grain.com/sosland/wg/world-grain-june-2022
https://digital.world-grain.com/sosland/wg/world-grain-may-2022
https://digital.world-grain.com/sosland/wg/world-grain-april-2022
https://digital.world-grain.com/sosland/wg/world-grain-march-2022
https://digital.world-grain.com/sosland/wg/world-grain-february-2022
https://digital.world-grain.com/sosland/wg/world-grain-january-2022
https://digital.world-grain.com/sosland/wg/world-grain-december-2021
https://digital.world-grain.com/sosland/wg/-world-grain-november-2021
https://digital.world-grain.com/sosland/wg/world-grain-october-2021
https://digital.world-grain.com/sosland/wg/world-grain-september-2021
https://digital.world-grain.com/sosland/wg/world-grain-august-2021
https://digital.world-grain.com/sosland/wg/world-grain-july-2021
https://digital.world-grain.com/sosland/wg/world-grain-june-2021
https://digital.world-grain.com/sosland/wg/world-grain-may-2021
https://digital.world-grain.com/sosland/wg/world-grain-april-2021
https://digital.world-grain.com/sosland/wg/world-grain-march-2021
https://digital.world-grain.com/sosland/wg/world-grain-february-2021
https://digital.world-grain.com/sosland/wg/2021_01_01
https://digital.world-grain.com/sosland/wg/2020_12_01
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https://digital.world-grain.com/sosland/wg/2020_09_01
https://digital.world-grain.com/sosland/wg/2020_08_01
https://digital.world-grain.com/sosland/wg/2020_07_01
https://digital.world-grain.com/sosland/wg/2020_06_01
https://digital.world-grain.com/sosland/wg/2020_05_01
https://digital.world-grain.com/sosland/wg/2020_04_01
https://digital.world-grain.com/sosland/wg/2020_03_01
https://digital.world-grain.com/sosland/wg/2020_02_01
https://digital.world-grain.com/sosland/wg/2020_01_01
https://digital.world-grain.com/sosland/wg/2019_12_01
https://digital.world-grain.com/sosland/wg/2019_11_01
https://digital.world-grain.com/sosland/wg/2019_10_01
https://digital.world-grain.com/sosland/wg/2019_09_01
https://digital.world-grain.com/sosland/wg/2019_08_01
https://digital.world-grain.com/sosland/wg/2019_07_01
https://digital.world-grain.com/sosland/wg/2019_06_01
https://digital.world-grain.com/sosland/wg/2019_05_01
https://digital.world-grain.com/sosland/wg/2019_04_01
https://digital.world-grain.com/sosland/wg/2019_03_01
https://digital.world-grain.com/sosland/wg/2019_02_01
https://digital.world-grain.com/sosland/wg/2019_01_01
http://digital.world-grain.com/sosland/wg/2018_12_01
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http://digital.world-grain.com/sosland/wg/2018_10_01
http://digital.world-grain.com/sosland/wg/2018_09_01
http://digital.world-grain.com/sosland/wg/2018_08_01
http://digital.world-grain.com/sosland/wg/2018_07_01
http://digital.world-grain.com/sosland/wg/2018_06_01
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http://digital.world-grain.com/sosland/wg/2018_04_01
http://digital.world-grain.com/sosland/wg/2018_03_01
https://www.nxtbook.com/sosland/wg/2018_02_01
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https://www.nxtbook.com/sosland/wg/2016_08_01
https://www.nxtbook.com/sosland/wg/2016_07_01
https://www.nxtbook.com/sosland/wg/2016_06_01
https://www.nxtbook.com/sosland/wg/2016_05_01
https://www.nxtbook.com/sosland/wg/2016_04_01
https://www.nxtbook.com/sosland/wg/2016_03_01
https://www.nxtbook.com/sosland/wg/2016_02_01
https://www.nxtbook.com/sosland/wg/2016_01_01
https://www.nxtbook.com/sosland/wg/2015_12_01
https://www.nxtbook.com/sosland/wg/2015_11_01
https://www.nxtbook.com/sosland/wg/2015_10_01
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http://digital.world-grain.com/sosland/wg/2015_08_01
http://digital.world-grain.com/sosland/wg/2015_07_01
http://digital.world-grain.com/sosland/wg/2015_06_01
http://digital.world-grain.com/sosland/wg/2015_05_01
https://www.nxtbook.com/sosland/wg/2015_04_01
https://www.nxtbook.com/sosland/wg/2015_03_01
https://www.nxtbook.com/sosland/wg/2015_02_01
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http://digital.world-grain.com/sosland/wg/2014_12_15
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https://www.nxtbook.com/sosland/wg/2014_11_01
https://www.nxtbook.com/sosland/wg/2014_10_01
https://www.nxtbook.com/sosland/wg/2014_09_01
https://www.nxtbook.com/sosland/wg/2014_08_01
https://www.nxtbook.com/sosland/wg/2014_07_01
https://www.nxtbook.com/sosland/wg/2014_06_01
https://www.nxtbook.com/sosland/wg/2014_05_01
https://www.nxtbook.com/sosland/wg/2014_04_01
https://www.nxtbook.com/sosland/wg/2014_03_01
https://www.nxtbook.com/sosland/wg/2014_02_01
https://www.nxtbook.com/sosland/wg/2014_01_01
https://www.nxtbook.com/sosland/wg/2013_12_01
https://www.nxtbook.com/sosland/wg/2013_11_01
https://www.nxtbook.com/sosland/wg/2013_10_01
https://www.nxtbook.com/sosland/wg/2013_09_01
https://www.nxtbook.com/sosland/wg/2013_08_01
https://www.nxtbook.com/sosland/wg/2013_07_01
https://www.nxtbook.com/sosland/wg/2013_06_01
https://www.nxtbook.com/sosland/wg/2013_05_01
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https://www.nxtbook.com/sosland/wg/2013_02_01
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https://www.nxtbook.com/sosland/wg/2012_02_01
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https://www.nxtbook.com/sosland/wg/2011_12_01
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http://digital.world-grain.com/sosland/wg/2010_12_01
http://digital.world-grain.com/sosland/wg/2010_11_01
http://digital.world-grain.com/sosland/wg/2010_10_01
http://digital.world-grain.com/sosland/wg/2010_09_01
http://digital.world-grain.com/sosland/wg/2010_08_01
http://digital.world-grain.com/sosland/wg/2010_07_01
http://digital.world-grain.com/sosland/wg/2010_06_01
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