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The Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low 11-20-2015 - Printable Version

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The Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low 11-20-2015 - silversurfer - 11-20-2015 05:14 AM

http://sgtreport.com/2015/11/the-baltic-dry-shipping-index-just-collapsed-to-an-all-time-record-low/#more-419915

he Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low



by Michael Snyder, The Economic Collapse Blog:

I was absolutely stunned to learn that the Baltic Dry Shipping Index had plummeted to a new all-time record low of 504 at one point on Thursday. I have written a number of articles lately about the dramatic slowdown in global trade, but I didn’t realize that things had gotten quite this bad already. Not even during the darkest moments of the last financial crisis did the Baltic Dry Shipping Index drop this low. Something doesn’t seem to be adding up, because the mainstream media keeps telling us that the global economy is doing just fine. In fact, the Federal Reserve is so confident in our “economic recovery” that they are getting ready to raise interest rates. Of course the truth is that there is no “economic recovery” on the horizon. In fact, as I wrote about yesterday, there are signs all around us that are indicating that we are heading directly into another major economic crisis. This staggering decline of the Baltic Dry Shipping Index is just another confirmation of what is directly ahead of us.

Overall, the Baltic Dry Index is down more than 60 percent over the past 12 months. Global demand for shipping is absolutely collapsing, and yet very few “experts” seem alarmed by this. If you are not familiar with the Baltic Dry Shipping Index, the following is a pretty good definition from Investopedia…

A shipping and trade index created by the London-based Baltic Exchange that measures changes in the cost to transport raw materials such as metals, grains and fossil fuels by sea. The Baltic Exchange directly contacts shipping brokers to assess price levels for a given route, product to transport and time to delivery (speed).

The Baltic Dry Index is a composite of three sub-indexes that measure different sizes of dry bulk carriers (merchant ships) – Capesize, Supramax and Panamax. Multiple geographic routes are evaluated for each index to give depth to the index’scomposite measurement.

It is also known as the “Dry Bulk Index”.

Much of the decline of the Baltic Dry Shipping Index is being blamed on China. The following comes from a Bloomberg report that was posted on Thursday…

The cost of shipping commodities fell to a record, amid signs that Chinese demand growth for iron ore and coal is slowing, hurting the industry’s biggest source of cargoes.

The Baltic Dry Index, a measure of shipping rates for everything from coal to ore to grains, fell to 504 points on Thursday, the lowest data from the London-based Baltic Exchange going back to 1985. Among the causes of shipowners’ pain is slowing economic growth in China, which is translating into weakening demand for imported iron ore that’s used to make the steel.

So many of the exact same patterns that we witnessed back in 2008 are playing out once again in front of our very eyes. Below, I have shared a chart that was posted by Zero Hedge, and it shows how the Baltic Dry Shipping Index absolutely collapsed in 2008 as we headed into a major financial crisis. Well, now the Index is collapsing again, and it is already lower than it was at any point back in 2008…

Read More @ http://theeconomiccollapseblog.com/archives/the-baltic-dry-shipping-index-just-collapsed-to-an-all-time-record-low


RE: The Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low 11-20-2015 - a07216 - 11-20-2015 06:43 AM

I've heard on video interviews by the Golden Jackass.... Asian cargo ships unloading Asian goods in US ports are going back to Asia empty or with scrap paper, etc... simply stated US is not exporting ... a cargo ship deadheading back to Asia is pretty darn expensive... no goods being exported is devastating....

However ... I like to do my own critical thinking and I've not found any facts or data to support this.... likely it is true...


The Baltic Dry Shipping Index Just Collapsed To An All-Time Record Low 11-20-2015 - silversurfer - 11-22-2015 03:05 AM

http://www.bullionbullscanada.com/index.php/forum/17-talk-economics/33001-baltic-dry-index-hits-new-all-time-low#33660

Baltic Dry Index Hits New, ALL-TIME LOW



by Jeff Nielson, Bullion Bulls:

This is not a new subject, either on this site, or more generally. Roughly a year ago; the BDI began a nose-dive. And by eight months ago; we were already looking at an apparent “crisis” in this Index.

Baltic Dry Index Crashes: Calamity or False-Alarm?

But let me back-up, for readers who are not familiar with this Index. The Baltic Dry Index is a measurement of global SHIPPING ACTIVITY. Most of what is traded in the world is transported by sea, and by freighter. So when we see this shipping activity plummet, this is generally a very reliable indicator of an overall economic collapse.

ight months ago; I pointed out that (in the early stages of this dive) that there could be “other explanations” for this trend, which were not necessarily indicative of collapse. However, its continued descent strongly negates those other possibilities. But note how the chart looks from the long term:
Obviously the BIG bubble-and-crash here came in the boom/bust cycle (created by the banksters) that ended with the Crash of ’08. Notice that even with all of the hype about “recovery” in the West (and particularly the U.S.) that there was never any significant “recovery” with the BDI, itself. This is further evidence that there was never any economic recovery in the Western world.

Note that China can continue trading with roughly half of the global population (in Asia) via rail traffic. Thus these stronger/healthier nations undoubtedly have much stronger “shipping” activity (by land) than what is indicated by the anemic BDI.

The BDI shows extreme weakness with respect to ISLAND economies: the UK, Japan, and even North America. With most of our trading partners in the Eurasian continent, WE need to “ship” to thrive, and obviously there is very little been shipped from (or to) the dying economies of North America.

What is really laughable is that the Western propaganda machine is trying to spin this as indicating “China weakness”, when China’s economy is much less dependent on sea shipping than is the West

Read More at http://www.bullionbullscanada.com/index.php/forum/17-talk-economics/33001-baltic-dry-index-hits-new-all-time-low#33660