Japanese tonnage provider United Ocean Enterprises has filed for bankruptcy as a result of the crippling dry bulk freight market, with the company registering more than US$1 billion, according to IHS Fairplay.
United Ocean Enterprises began to struggle in November, 2015 after it was reported that, as a result of the falling Dry Bulk Index, securing new business was becoming much more challenging.
It was announced previously that the Dry Bulk Index had fallen to a record low of 429 points, but has recently fallen further to a new record low point of 383 points, according to gCaptain.
The Dry Bulk Index is showing that the industry is struggling with a slump in demand, with carriers desperately ordering more vessels and cutting capacity to keep afloat in a turbulent market.
Despite the difficult conditions, Drewry Maritime Advisors recently forecasted that any recovery in the dry bulk sector will not come to fruition until 2017.