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Dry-bulk shipping market soars

The dry bulk shipping market has experienced exponential growth over the past five years with 2008 already breaking records, according to a report by FIS, a UK-based dry-freight broker. The cost of hiring a Capesize bulk carrier, which carries coal and iron ore, has hit $233,988/day, up over 200% from January this year. Meanwhile, the dry bulk derivatives market is now worth $125bn, up from $50bn at the same time in 2007 with banks and hedge funds accounting for 40% of this value compared with only 15% in the middle of last year.