thursday thanksgiving trading, page-33

A wiki entry on BDI..

Impact of 2008 financial crisis

On 21 May 2008 the index reached its record high level since its introduction in 1998, reaching 11793 points. Less than half a year later, on 4 November 2008, the index had dropped by 93%, to 815 points,[7] the lowest since 1999. These low rates move dangerously close to the combined operating costs of vessels, fuel, and crews.[8][9]

By the end of 2008, shipping times had been already increased by reduced speeds to save fuel consumption, but lack of credit meant the disappearance of letters of credit, historically required to load cargoes for departure at ports. Debt load of future ship construction was also a problem for the companies, with several major bankruptcies and implications for shipyards.[10][11] This, combined with the collapsing price of raw commodities created a perfect storm for the world's marine commerce. Cheaper fuel was no longer able to offset this situation and global letters of credit are beyond the powers of the Federal Reserve.