The Baltic freight index, which is the barometer for high seas shipping freight rates, hit a record high in the early part of 2008. But ever since the second quarter of 2008 the index has been falling slowly and steadily due to reduced demand for sea freight. The sharp drop in import of coal and iron ore and other minerals by China / Europe and other key Asian giants has resulted in sharp drop in the demand for ships. Add to this the arrival of new ships into the system ordered during the peak times. The baltic index has thus crashed by 90% to hit record lows recently.