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Here's Why The Baltic Dry Index Is Collapsing (In 1 Image)
If ever there was a better indication of the malinvestment boom created by an interfering Fed, this is it. As demand for shipping collapses on real slowing in the global economy - markets have "told" shipbuilders to "build it and they will come"... here is a ship-shipping ship, shipping shipping ships.
h/t @NMMGreenwich
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Iceberg ahead !!!!
you've got to be shipping me
I can't imagine the size of the cranes required to do that.
As messed up as things are today, mankind's industrial capability is amazing in the scale we can build today, but most people don't ever see these feats of engineering.
That - is The Ship of Fools.
Holy Ship! ;-)
Looney
+++++++ for the Firesign Theater, Tyler, if my uh memory serves uh...
me
uh
what?
heydidju order the pizza?
"Yeah, I'd like a large pizza and no anchovies..."
I don't get it...
Hadn't they invented BDI after they stacked them steelcases atop one another, high?
You mean it was all for "nothing"...
Oh, what's with the "no" anchovies?
I dunno but after seeing that image, I immediately SHIPPED MY PANTS!
Skipper: "That has got to be the second biggest stack of ships I've ever seen."
You can't make this ship up?
Yet the shopping malls are still filled to the rafters with people. Go figure.
Not in Marion Ohio at least, maybe Dayton...
Oh, I get it now! This is that alien thing that floated to the surface at the end of The Abyss (Special Edition).
I hear it is also capable of carrying one average-sized American
b,b,but them tri-angular, not rect-angular, no?
Am I wrong or is that a picture of the new Carnival Cruise ship? Guaranteed lifeboat space for everyone.
Don't ship me bro......
It looks like they are headed for the scrap yards. Tax deductible including loss of potential income. Broken window falacy on steroids
Nick Danger says high.... he is still in Nairobi:)
You know it's getting stupid when you can buy a tramp on Ali Baba for 50% off plus insurance.
Personally waiting for another 1985 style blowout where ships are going on sale for 40% of scrap value. Old man Onassis/Morgan Stanley made a killing back then turning hulks into bunkers and floating fridges.
A Tower of Babel
Inception Ship(tm)
Too bad that pic is OVER TWO YEARS OLD.
http://www.dailymail.co.uk/sciencetech/article-2158305/Thats-load-ships-...
crack reporting as always tyler!!!!!!!!!
ROFLMAO zerohedge has become a joke.
The fact that the picture is two years old does nothing to alter the fact that the Baltic Dry is collapsing. The picture is a warning that the collapse is not necessarily due to falling trade volumes, but also because of oversupply of ships - an indicator of irrational exhuberance in recent years and a serious over estimation of demand for goods. Overproduction of ships would not occur unless commodity consumers and goods producers were not also wildly optimistic and built what is now excess capacity. The stacked water craft in the picture (which actually look like large sea faring barges) is merely a convenient graphic illustration of a much larger problem.
Bullish Moet & Chandon, someday, in a galaxy far far away
The picture is a warning that the collapse is not necessarily due to falling trade volumes, but also because of oversupply of ships - an indicator of irrational exhuberance in recent years and a serious over estimation of demand for goods.
Irrational markets? Whaaaaaatttt??
In other news, some serious ship porn:
http://i.dailymail.co.uk/i/pix/2012/06/13/article-2158305-13936DB6000005...
Thats truly amazing.
Mr Palladium has a point. The oversupply of almost everything is astronomical. For example, walk into almost any retailer and the isles are packed with clothes stacked up to the ceiling all discounted 60% ... no ... 70% ... no ... 80%..NO!...90% off!!! and yet few peeples are buying.
YET, thousands of ships loaded with a flood of clothes wait offshore from China ... Vietnam ... Bangladesh ... Cambodia, Honduras and on and on ready to release more Flood of acrylic, rayon...you name it on top of the mountains of textiles we already cannot sell.
Massive backlog portends a scary ending as the global economy sinks deeper into recession some say.
'the isles are packed with clothes'
A few hours after the street rioting and looting begins, that inventory problem will be eliminated.
Iagree with oversupply ovreall, but in stores I am seeing "faced" shelves 1 item deep. Any supply chain disruption and store inventory could become pretty thin.
Guess what? It's still perfectly applicable today, as those ships are the very definition of the higher order capital goods where malinvestment occurred in advance of the collapse of the consumer goods industries that were originally supplying an unsustainable demand driven by a credit-fueled crack-up boom.
You've stranded all your capital to pay for a trillion dollar ten man Army.
Hmmm.
Ummm..."we'll just print out way out of this?"
Can you even get a handle in Vegas these days?
Sure "they bet on everything there"...ten dollar slots are the way to go?
2012 - so what - the FED gravy train to perdition began in 2008.
Besides, they'll make great troop and armament carriers for China when the time comes.
The picture is there for dramatic effect. The OP is not saying the baltic dry is collapsing because of this picture, you had to reach for it.
Aside, I was on a ski lift with some shipping folks earlier this year. About six of those "shipping ships" go missing every year. It's thought that a rogue wave is to blame, but nobody misses the crew and the whole thing is just a write off. When your shipping a sweater made by Bangladeshi slave children for $.12 and the shipping costs are $.02 and you can sell it to some rich westerner for $25.00 on sale, who cares?
The decadent west needs to be brought down to parity with the rest of the world before we can have a world community and government to serve us all as equals.
So the key to nirvana is to have everyone live in abject poverty? Gee, that's uplifting.
Abject poverty is going too far. I think the poorest in the world and the richest can meet somewhere in the middle, perhaps a bit closer to the bottom than the top. It certainly doesn't change the fact that the west achieved it's wealth mostly by borrowng from future generations. Stealing, actually, since there really wasn't any intention to repay.
@Quentin Da
Yes, we must enforce equality and make everyone meet somewhere in the just south of middle. First you play opposing forces against eachother, then you come in with the solutions. The force is strong in you.
what is the point for the rich to uplift the poor ?
There is absolutely no point in doing it
The official policy of the rich as stated by the queen is to reduce world population down to 1 bln or even less
I'm not talking about the 'rich uplifting the poor', nor any form of imposed wealth redistribution. I certainly don't think that people who have earned their wealth should have it confiscated to give to those who haven't. IMHO, charity, while socially admirable, should always be voluntary.
I'm currently travelling through Australia, and here more than most places I've been, people draw a pretty clear distinction between the wealthy who earned their wealth, generally held in high public esteem, and those who didn't, who aren't.
In spite of generalisations and jokes to the contrary (and I'm as guilty of this as any), the reality is that people aren't that stupid. They can pretty readily tell whether someones wealth is earned or not. Much of the wealth that resides at the very upper end of the scale was not earned honestly. So much of it has been accumulated through theft, both overt and covert, in some cases over the course of centuries. The wealth redistribution that I anticipate won't be a government program. It will be those who have been stolen from forcibly reclaiming that which was stolen.
There are limits to how unbalanced a system can become before it collapses in order to return to a more stable state. I have a feeling that Her Magesty's Wealthy Looters Club which has only existed for a few hundred years (not long in the scheme of things) is going to find out that their activities are driving society to become too unstable, and it will all fall apart too soon to allow them to carry the plan through to completion.
This thought gives me hope.
Apparently the key to "personal nirvana" is hanging out on the ski slopes with shipping magnates, discussing the decadent west...or sumpin ;-)
@Quantum Neucleonics *sheesh
Nirvana? Who said you earned it?
"...The decadent west needs to be brought down to parity with the rest of the world..."
What the hell were you doing on a ski lift, practicing looking down on people you propose to join?
Your man Obama is bringing us down as fast as he can and if you really think that any government will ever "...serve us as equals..." you are beyond hopeless.
Sheesh!
No no.. you misinterpret what he is saying:
By "decadent West" he means the Western peasantry and their decadent spending. How DARE they have disposable income. Buying new clothes? Only your betters can, and should be able to afford new clothes. Wear your rags serf.
And obviously this was a a ski-lift for the aristocracy to nonchalantly defecate onto the serfs below, while swilling champagne and eating beluga caviar. It always runs downhill.
@brosephstiglitz
In the summer we prefer, " A rising tide lifts all boats."
The winter it's "Shit runs downhill."
Guess who controls the weather?
zirpedge
guess who controls
the shit...
@Mike in GA
I guess your more equal?
< Stacking
< Bulk boating accidents
Michael rowed his boat ashore...
Damn, that's some fancy rowing, Micheal! Oar is it?
my goat knows the bowling score....
It's the same ship that moved the USS Cole back to the U.S. after it was bombed by Al Qaida.
Yep. Pretty amazing. Even more amazing when that industrial capacity gets diverted toward military production. I'll sit out with a tumbler of whiskey and a lit cuban and watch mankind's biggest ever fireworks display.
Cash for Cape Clunkers
Bullish.
Bullship.
That's a boat-load of screwed owners, if they financed most of each ship.
The bankers who made the Debt Obligations, however... will let them take about "an hour on the tower of power..."*
* verse from Frank Zappa (Bobby Brown)
Wish I could do that. Health concerns prevent it.
Hello? Mankind built pyramids for ONE stupid pharaoh. It required countless weeks and months and years of planning, engineering, gathering of materials and building.
We're always reaching for the stars while billions on this planet cannot read, cannot write, don't have quality nutrition. Stupid stupid stupid!
Please tell me when was it ever any different?
Example: The Burj of today is yesteryears Pyramide.
Burj occupancy average 10% because it is in the fucking desert (with a bathtub of sea) and they don't have any cheap whores or decent casinos.
That's just the tip of the iceberg.
I for one visited the Burj, they practically gave the top floor suites away for nothing. It was a real ghost hotel. And then those dumb Emirates bought up the Aria in Vegas, the Aria sucks. Moral is the Emirates suck.
They have cheap whores and gambling and drugs and alcohol. Just look under the surface. Corruption is rampant there.
Yeah they had cheap whores. It's just a matter of how much one considers "cheap"
The Dollars are rolling there so the entertainment is not cheap. Similar to towns in the Dakotas where the guys make good pay working the shale jobs. Richer of course in the Emirates.
Ok, smart ass. Can you, personally right here on the hedge paste your action plan, your detailed mining and manufacturing process for cutting even the cornerstone of the Great Pyramid?
I didn't think so.
You have a lot of stupid followers, too.
Here's how they built the pyramids:
http://www.theforgottentechnology.com
Stonehenge too.
Thanks Ollie, but that's not even similar to the pyramids at Giza. Try again.
Yes but- We'd still be stymied in re-producing the pyramids of the Giza Plain. Just my opinion, of course, but there's the moai, and the phenomenal crop circles of recent times- far more impressive than ships shipping shipping ships imho.
then again... we haven't..
built anything to rival the Great Wall
built anything to rival the Great Pyramids
built anything close to Stonehenge
We can build big things now, and fast. We just can't build stuff that LASTS.
Name 1 building constructed in the last 20 years that you expect to be around in the next 200 years.
They are all built with stone, we don't use stone. Stone lasts for millenium. The next question: do we want anything we build to last? Or, is anything we build worth keeping? Are they marvels or have greater meaning in the universal cosmology?
It is hard to attach significance when a project, regardless of engineering prowess, is merely an enticement to spend moar. For me, my farm is one of the most beautiful places on earth ( and I have seen a lot of the earth), the structures and engineering pale compared to what nature has accomplished and will continue to accomplish when we are all dead and gone.
The wonders of the world are transient dreams made reality for a period of time. Still, a dog will take a dump on the greatest of them without a glimmer of guilt. Once you eliminate pride, structures are just structures. Now, if we could learn to build within nature, harnessing her designs and methods, structures would coalesce and fall apart and fail to poison us in the process. That would be truly extrordinary.
Yes, maybe a dog (or yourself) would take a dump on these structures without a care, but I was so hopng that that you were smarter than that. Your whole fucking existence is absolutely and unequivocally dependent on those who went before you.
To reduce the sum of that experience to "transient dreams" is to me, your claim to be 'elite'.
Fuck off, Sean
Need moar ferrys.
Fairies are all over the tee vee.
It would add to the plausibility of that whole "boating accident" thing.
Keep stacking boys and girls.
I can't imagine the size of the cranes required to do that.
The Shipping Ship sinks and they float the Ships to be shipped on it one layer at a time.
h/t
I hope you're being sarcastic. You gonna sink the ships too?
Mr. Spock, your job is safe.
Nope! Not being sarcastic.
No crane in the world is big enough to lift these sorts of cargoes onto her deck and so she has an ingenious trick up her sleeve.
The deck is submersible and can disappear under 13 metres of water when her ballast tanks are pumped full of water.
Boats, oil rigs and ships can then be floated on before the deck is raised again by emptying its ballast tank.
Read more: http://www.dailymail.co.uk/sciencetech/article-2158305/Thats-load-ships-The-carrier-boat-hold-22-barges--oil-rig--back.html#ixzz31k9IgLQfFollow us: @MailOnline on Twitter | DailyMail on Facebook
But how do the smaller ships get stacked on top of each other?
Read the article: special harnesses.
For his senior prank, Ben Bernanke let three pigs labelled QE1, QE2, and QE4EVA loose in his school.
Had to build $17 trillion worth of cranes to get them out.
I pulled up the manifests and each of those ships on ships is packed with good and silver - headed East.
Think loading from the bottom. No crane, elevator.
No cranes required
It's all explained here (if you can get past her accent...lol)
http://www.youtube.com/watch?v=2ShjJW85S7E
Holy ship!
See if you can hold your tongue and say, "My father works in the ship yard".
lmfao. Now that was funny, I don't care who you are.
When ships Hump, it's so boring
If your product is giant stuff that floats, why would you stack it on a barge?
Just like the global economy, the Titanic was deemed to be unsinkable too. Not sure what it is about human herding behavior that makes people act like such jackasses.
Herd instinct.
Hiding in center of herd is easy.
Safe from shepherd's whip, sheepdogs & wolves.
Only mavericks leave the herd, & the shepherds don't like them.
Yeah and when the herd is a herd of lemmings that are heading full-speed off a precipice, I'll take my chances against the predators.
For millions of years, the tribe promoted survival - especially those at the top.
Now it only promotes the survival of those at the top.
The only maverick allowed to leave is McKain, the esteemed gentle-person from Arizona.
"here is a ship-shipping ship, shipping shipping ships...", by the seashore lolololololo. This is going to end really badly for the US and the world when this economic game implodes.
Jenga!
Is that a Chinese cruise ship?
except I'm not seeing the oars
Just a little channel stuffing. They run the GM way baby......
China have shipbuilder behind every brade of grass
http://www.reuters.com/article/2013/12/09/us-china-shipping-idUSBRE9B80Q320131209
Honestly if they wanted to misallocate capital on that scale they'd be better off following The Ben Bernank's advice and tossing it from choppers above Walmart parking lots.
No worries: You didn't build this ship...
True. I guess the Chinese taxpayer did.
A new industry is born! No orders? Just build and ship shipping ships! DOW to 50k and up on "notional shipments."
I shiped my pants
I just shipped my pants!
http://www.youtube.com/watch?v=hL4lSavSepc
I just shipped my barge !!!!
OMFG - That is insane.
HOLY SHIP !!!
That's a SHIP-TON of SHIPS !!!
"As demand for shipping collapses on real slowing in the global economy - markets have "told" shipbuilders to "build it and they will come"... here is a ship-shipping ship, shipping shipping ships..."
Someone needs to force the Administration and Congress to have that picture and this caption at the foot of every last page of legislation that gets passed into law along with their individual official outgoing letters!
Well done again Tyler in hitting the sweet spot!
Cash for clunkers?
It's like stacking ship on top of ship, generating one giant pile of ship in the process!
WTF
so where's the band?
lol that gave me a great idea they should re-fit them as cruise ships for fat dumb 'merkans that want to stuff their faces for 7 days and get some sun
And by the way.....which one's Pink ?
Here's a video of it. ? Amazing ship transport VEKA / Blue Marlin (part 1) - YouTube
These barges are going to be leased to independent river captains in Holland and Germany to ship raw materials back and forth up and down the Rhine through Holland and Germany. The barge traffic is huge on that river. But if there's a drought like in 2011, they have a problem. The river got closed for weeks due to low levels.
They used to be built in Europe but this looks like the barges are coming from either China or Korea.
Decommissioned barges make for great living quarters on the rivers of Holland.
http://www.livingafloat.com/cb/articles/byab/nl.php
Right downtown in many cases. In A-dam they're steps away from the red light district. Wouldn't suprise me to hear they're having barge bordellos as well.
We are in deep ship!
No ship...
Off-topic: I want to see how they stack those up like that.
The barge is vitually submerged and the tankers are floated into position, one deck at a time
Carefully.
Hory Ship!
I don't know...something's missing...
I got it! Needs more cowbell!
http://www.youtube.com/watch?v=8Ix7jqxXQ2I
the wreck of the Fed-mund Fitzgerald...
LMAO!!!
Ships for Fools
I just shipped my pants.
China ain't got ship on the Dutch.
http://www.youtube.com/watch?v=QJ882QYzr-M
sherry sherpa shipped a ship of shippies , ship went down and shipped a show of shippety shipper shippers.
shabooooya.
The shit came out on shippety for me.
http://www.forexlive.com/wp-content/uploads/2013/09/Captain-Jack-Bernank...
All heil Cap't Bernanké
It's a North Korean "Carnival Cruise" ship...
Which deck is for the dog eating uncle shows? Its a bitch to find
That's 'cause you should be looking for Uncle-eating dogs!
BDYI has been flat for a month now. Maybe they can ship Chinese ghost cities to India or something.
Will make good low income housing.
Or planters.
Epic, EPIC malinvestment.
Central Planning's Best investment is Malinvestment. Pass it along
Yo Dawg! I heard you like shipping ships, so we put shipping ships on shipping ships on shipping ships, so you can ship your shipping ship while you ship your ship all on the same ship!
I am confused as ship.
"Turtles aaalllll the way doooowwwn!"
I'm just happy I wasn't drinking anything when I read that.
demand for shit declined, is that possible?
will the world end and all the people die from
a decrease in gluttony? oh my, no, but the
"money" system of debt cannot tolerate the math.
the guy at the next table just said ....
"my wine says 'oh, fuck off mate'".
he nailed it.
wonder why even the FT does not cover the issue of the collapse of the Baltic dry index? They had an article about it when it made a 3 year high in Dec.
Obviously something is not right
This means Gov-Mart is selling Scrap metal and Scrap Meat...what a model...Bravo!
Viewing the Panama Bay parking lot for inactive ships recently, I note that it continues to contain 30 to 50 ships. (Some pumping their bilges in violation of environmental laws of Panama.) But the composition of this fleet has changed. Whereas formerly it contained mostly container and dry cargo ships, there are now fewer of these latter, and a majority of tankers. I attribute this to the decrease in tanker traffic between the Middle East and the US resulting from greater domestic petroleum production. But the port company continues to store empty containers six high in all available space.
Look Shipmate, If you're going to make an article you might as well tell us the hull story otherwise fo'c'sle be confused about why this is important.
Destructo
Well done. Took me a few reads, but...well done.
There is no need for italics - we'll get it; this is the 'hedge not HuffPro.