A decline in China’s demand impacts the world’s largest shipping companies, forcing some companies to sell their ships at a low price to survive the severe crisis.
The crisis may be one of the most difficult hurdles in shipping history. According to the "Wall Street journal" ,Libra Group CEO George Logothetis said the Chinese stalled. He believes that the current crisis is comparable to Armageddon ". The situation is especially difficult for dry bulk shipping companies, which are mainly responsible for the transportation of materials in the global trade, including grain, iron ore and so on. Baltic Dry Bulk Index (BDI) which be considered as global trade vane peaked at 11000 on the eve of the financial crisis in 2008. By this Wednesday, the index closed at 358. BDI has set record lower every day this year.
It force some shipping companies to sell cargo ships at a low price. Many of them were convinced that the global economic crisis had passed and expanded a few years ago.