The Baltic Dry Index (BDI) is closing in on just 300 points as the run-up to Chinese New Year puts dry bulk freight rates under further pressure.

The BDI fell a further seven points on Wednesday to hit yet another historic low of 303 points. The Baltic Capesize Index (BCI) lost a further eight points to drop to 209 points.

Looking at the capesize market in its weekly report on Wednesday Fearnelys commented: “As everyone is getting ready for the Chinese New Year, already depressed rates are under further pressure.”

With rates at such low levels laying-up vessels is becoming an increasingly attractive option. “Owners are exploring the opportunities for laying up tonnage but so far few ships have actually been laid up,” it said.

A report by VesselsValue.com estimated that cold lay-up costs for a capesize were $1,500 per day and when rates were below $4,500 per day it was the cheaper option compared to operating the vessel. According to the Baltic Exchange the average T/C spot rate for a cape is just $2,775 per day.