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Posted on January 28, 2010

On Tuesday China put into operation the clampdown on business credit which it had announced previously.  This has produced a fall in the Baltic Exchange main seafreight index, as China’s demand for raw materials was one of the main factors sustaining freight rates.  However, there is still a shortage of capacity because shipping lines took ships out of service in response to the economic downturn which may help sustain rates.

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