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Baltic Dry Index Collapses 35% – Worst Start To Year In 30 Years

Introduced in 1985, the Baltic Dry Index first and foremost is a measure of the global shipping rates of dry bulk goods, mostly consisting of vital raw materials used in the creation of other products.

Economy and Finance

Baltic Dry Index Collapses 35% – Worst Start To Year In 30 Years



New Zealand oil spill

When this indicator of global trade rises, everything is rosy and reams of asset-gatherers and talking-heads wil quote it as indicative of how great the world is. When it drops – silence. There’s always an excuse – over- or under-capacity, too many ships, too few ships, etc. However, the last 2 weeks have seen a 35% collapse in the cost to ship bulk. There is a relative seasonal pattern over the holiday period – with shipping costs rising into the holiday and falling after but… this is the biggest drop from a Christmas Eve since at least 1984, 30 yearsSeems like the inventory stacking of Q4 had absolutely no follow-through whatsoever…

All the post-Thanksgiving exuberance has been eviscerated from the Baltic Dry Index…

and some context – this is the worst post-holiday start to the year since at least 1984!!

Cramer?

Charts: Bloomberg

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Contributed by Tyler Durden of Zero Hedge.

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