Baltic Dry Index

David McWilliams mentioned the decline in the Baltic Dry Index in his column last Sunday: there is more on the topic here.

3 replies on “Baltic Dry Index”

Those who have hope, in the short term, are deluded.

The stimulus must be removed, so E 10,000,000,000 of taxes, PLEASE!

Then we will get a clear idea of the economy. Until then, no one will risk anything, as we all know it can only get worse!

No wonder trade is falling! No one can possibly hope to borrow into such a storm.

The BDI had a 17-day straight loss, totalling 38% to Monday.

Caution is required in interpreting this as reflecting a big drop in trade.

Shipping broker ICAP said in January that around 1,400 dry-bulk-carrier deliveries would be made in 2010 – – a big increase on 2009

The BDI is sensitive to Chinese iron ore and steel shipments and the index which tracks dry bulk shipping rates on 40 global maritime routes more than doubled in five weeks in early 2009 – – during a slump in trade when Singapore had a huge number of ships anchored.

The Chinese are very sensitive to the pricing of iron ore and there is a cat and mouse game with producers. So demand isn’t consistent.

There was also a period in 2008 when market speculation sent future rates surging only to crash later in the year.

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