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’Chinese New Year and the BDI
Should you be worried about the Baltic Dry Index’s recent sharp selloff? Or should you be more worried about developments in China?
We bring this up because there is apparently somewhat of an après-Chinese New Year effect when it comes to the Baltic Dry Index.
Don’t panic, the Baltic dry is a rubbish indicator!
The Baltic Dry Index (BDI) — a measure of shipping costs for dry bulk goods — suffered its 29th consecutive daily decline on Wednesday, to record its longest losing streak in more than six years, according to Bloomberg.
Freight fright *alert*
Many analysts view the Baltic Dry Index, a measure of shipping costs for dry commodities, as a forward macro-economic indicator.
So should we be worried by the fact that the index last week experienced its biggest weekly decline since 2008?
As Bloomberg observed on Friday:
The tricky business of forecasting orderbooks
The Baltic Dry Index, a measure for the price of shipping bulk commodities, has made a wavering comeback since plunging like a stone in the fourth quarter of 2008:
Broker Icap now makes the point that seaborne dry bulk trade has recouped almost all of its lost volume,
Falling Fal of global trade
The river Fal in Cornwall is one of South England’s great beauty spots. Normally.
Because of its depth and close links to major Atlantic shipping lanes, in times of economic crisis, the Fal estuary is also a cheap place to park massive container ships:
Fleet-owners face bankruptcy threat from plunging shipping rates
Global shipping rates are set to fall by 74 per cent this year as commodity demand continues to fall in Asia and the massive glut of vessels ordered during the boom years finally takes to the seas, the Telegraph reported.
Baltic dry index – the quick march
The mixed signals can’t get any more mixed, the Baltic Dry Index, which tracks rates to ship dry commodities, is up 3.6 per cent on Thursday to a new 4-month high. Here’s a historical chart for context.
Shipping tides are turning — for now
We were waiting to see if it was a one-day phenomenon, but no – Wednesday’s 15 per cent rise in the Baltic Dry Index has been sustained through another day.
Wednesday’s move to 1,316 points was in fact the biggest daily increase in almost 25 years and came reportedly on signs of a recovery in raw materials trade. On Thursday the index,
Baltic Dry Index jumps 15%
The Baltic Dry index, the benchmark for freight costs for dry bulk commodities such as iron ore, coal and iron, on Wednesday jumped almost 15% to 1,316 points. the biggest daily increase in almost 25 years,