The benchmark Baltic Dry Index hit a new all-time low of 468 points, in what analysts at Deutche Bank described as a “perfect storm” for bulker operators. The index exceeded 10,000 points only five years ago. Deutche Bank had a warning regarding vessel sales in the current weak market, suggesting that offloading ships could force some operators into bankruptcy as large asset reductions would violate their loan covenants. Bankruptcy proceedings and forced sales are becoming almost commonplace among bulker companies overseas, and analysts predict many more for 2016.
