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Baltic Exchange Chairman Says Fall In Dry Index Unprecedented

Last update: 10/22/2008 9:53:48 AM

LONDON (Dow Jones)--The chairman of the Baltic Exchange, Michael Drayton, Wednesday told BBC World Service radio that the fall in shipping's Baltic Dry Index was unprecedented.

"I think in the history of shipping, there's not been such a rapid decline. If I put it in dollar terms, you mentioned May as the peak point - $240,000 a day for a Capesize bulk carrier, which today is $9,000 a day," Drayton said.

The Baltic Dry Index covers shipping costs for freight such as iron ore, coal and grain.

He added that the index was one of the best indicators of economic health because it reflected world trade, and that iron ore shipments from Brazil to China seemed to be worst affected.

Web site: http://www.bbc.co.uk/worldservice

-London bureau, Dow Jones Newswires; [phone]; [e-mail]