Slow recovery likely for freight derivatives amid low market rates

Rough seas

Rough seas

Since those heady days in June 2008 that saw the capesize vessel category freight rates hit an astonishing $233,988 a day, freight market prices have fallen a long, long way. By the end of 2008, capesize rates were less than $2,500 a day. Although there have been periods of recovery, rates never threatened to climb back to those unprecedented levels and only in the last month, capesize rates hovered around the $5,000 a day mark.

The situation became so severe that the Baltic Exchange recorded it