The Baltic Dry Index has fallen to 553 points, down 1 point from the record low recorded in July and August 1986.

Dry bulk owners have seen their earnings slashed as a result of the index fall, some of them even forced to resort to bankruptcy, as it was the case with Copenship.

Moreover, it is feared that the continued decline may have a ripple effect on bulk owners causing more bankruptcies as shipping rates plunge even further.

The Baltic Dry Index has fallen close to 50 percent over the past 12 months.

One of the main reasons for the costs of shipping bulk commodities declining to a record low is China's weakened demand for coal, with the country's seaborne coal imports sliding by 10 percent last year.

Another crucial reason is overcapacity on the market, triggered by shipowners ordering three times more bulk carriers in 2013 than in 2012, on the back of China's growing demand for coal. These newbuilds are entering the market now, and by competing for commodities, are pushing the rates down.