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WTF Chart Of The Day: Baltic Dry Index Crashes To Lowest In 29 Years
Quietly behind the scenes - and not at all reflective of a collapsing global economy (because that would break the narrative of over-supply and pent-up demand) - The Baltic Dry Index plunged over 5% today to 632... That is the lowest absolute level for the global shipping rates indicator since August 1986...
"Transitory"
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ruh roh raggy.
Nothing more than a little overcapacity from overbuilding of ships during that overzealous period when markets were overpriced. Transitory.
Not to worry, because with viedoklis_lv around (I mean freedom123), the Baltic Lie Index is surging to all time highs.
Shouldn't affect the price or avalability of fresh fruits or veggies, I mean just how many of those critters can you sail off to another country?
I dunno. I sort of liked 1986.
Yep, must be overcapacity from the boom time we just had. I must have missed the boom time while I was looking for the recovery, but all I found was some rotten seedlings that never became green shoots.
I'm sure once Recovery Summer 6.0 is launched later this year, all the bugs will have been worked out.
Don't say that, I've been in the market for a cast-off yacht for a long time. I can think of nothing better than a big freighter so I can have paintball wars while I cross the Pacific.
The era of abundance is upon us. The price of everything tends to 0 while the AI and robots does all work.
Convert to movable Oil Storage ships. Be like Goldman Sacks.
Plan on 20% leakage, just to be prudent.
Are we going to watch this tick for tick now every day
Actually, shipping rates are falling due to our phenomenal growth in manufacturing in America. We are virtually making everything here now so there is just no demand for shipping from China or anywhere else. We have even conquered our oil dependence through modern fracking technology and don't even need tankers from the ME anymore. And best of all, prices for everything are falling due to our incredible technologies and resultant efficiencies (or should I attribute that to The American Worker?), all of which is the result of the incredible leadership of Barackobamamama. FORWARD!!
We are WINNING!!!!
You've been taking lessons from Million Dollar Bonus. Nice work.
MDB's ace student apparently.
Just skipped lunch is all...low brain sugar.
Obviously drugs from MENA aboard US military planes are not part of that index, which is kinda too bad. Maybe Geithner will propose a change to how BDI is calculated to include narcotics?
You have to admit, that is still a bunch of sex slaves heading to Tev Aviv, London, Paris and Brussels. A literal fuck ton.
So many good movies that year
that's because Drones are not part of the equation yet lol
nah, its bullish because all those overbuilt bulk carriers which used to ship TV's to Best Buy will now be converted to store crude oil. And those dry goods shippers who do not want to sell/lease their 2010 Daewoo superhull to store corrosive Saudi Sour will hire a Greek company to scrap the hull, leading to record EU employment gains, leading to proof that QE works and improving laborforce attachment.
Shit, this story arc almost writes itself.
If they're going to start storing crude in tankers, then you want to go long on Zinc.
Global trade plunged after the 2008 financial crisis, leading to an excess in capacity in the container shipping business that left HSH and other maritime lenders, including NordLB and Commerzbank AG, saddled with billions of euros of bad debt. HSH, bailed out by its state owners Hamburg and Schleswig-Holstein in 2009, holds 21 billion euros in ship loans, 9.2 billion euros of which are non-performing, according to company data.
http://www.bloomberg.com/news/articles/2015-01-26/hsh-nordbank-sees-1-7-...
Add that to the EUR2.2bn greek debt that needs to written off at Commerzbank and it could start raining men.
Wait, What?
Weather Girls Raining Men?
https://www.youtube.com/watch?v=l5aZJBLAu1E
or
Gravediggaz Raining Men?
https://www.youtube.com/watch?v=cTXeg-Swq9w
...it could start raining men.
True, but you misspelled RUINING.
when oil crashes so does the baltic dry
think the big players cause this
so they can rent tankers cheap
to buy and store oil on...
then sell back into the market
when prices take off again...
same thing happened in 2008 - 2009
We do not need industry or trade we just need the stock market and wall street , this is the new America , 98 million people do not have to work the Gov't hands out free shit to 47 million and we are still the most powerfull nation on plant earth , the rest of the world are our bitches , you don't like that then we will bomb you into the stone age . Obamer our great leader just has to find a way to get rid of another 100 million jobs to other countrys and then no one has to work . Get to work China you slackers we want new iPhones and fuck you middle east give us cheap oil or we will fuck you up again . Let's hear it for 5 trillion dollar black ops making America the paradise it has become . ps thankyou America's police force keep killing those pathetic one's that question America's athority.
Yep, this is always spun as "there are too many ships" instead of the truth that there is no demand.
There is no demand for the too many ships.
Fixed.
Aye, matey...but surely there's a fine song we can sing!
Here is one. A fine song indeed.
https://www.youtube.com/watch?v=ZQ6Fmy4KMoM
632? Is that After Ford?
It's about frieght being moved, not the number of fucking ships.
When the index gets low, it is frequently blamed on excess capacity (too many ships) instead of low demand:
http://www.thestreet.com/story/11394936/1/baltic-dry-index-swamped-by-ex...
http://www.distressedvolatility.com/2011/02/baltic-dry-index-down-60-on-...
https://www.bondvigilantes.com/blog/2014/07/31/collapse-baltic-dry-shipp...
actually it is about the number of ships. The size and scale of ship building in the last 10-15 years is staggering. Not only were shippers building more ships they were building bigger ships. Fleets of the biggest that have ever been built. And it takes years to build a vessel. After the crash, the only way for shippers to make money with low day rates was to have more ships. During the crash it became ALOT cheaper to build a new ship. So any shipper with money was ordering even more ships for delivery 2-3 years out. Basically shooting themselves in the foot and increasing the glut. The cycle is long in the industry. A ship can last 30 years. The only way to get through the glut is to scrap the excess supply of ships.
That's a mini primer on the industry. The BDI is complex and swings wildly due to many factors. It is not the smoking gun on whats happening with the global economy. Anyone who says different is a fool.
So it's meaningless, like the price of fuel, the price of lumber, the price of housing, the price of interest, all meaningless.
Reading the tea leaves, and then suddenly discover what they are telling us....we drank all the damned tea and there ain't no more!
Exactly. Only trust the employment #s coming out of the BLS.
Yes and no. Depends on what's going on all of those industries.
You just wait they will build a bigger canal even bigger than the Panama canal for all those ships and the new monster ships one day.........Oh.
http://www.thedailybeast.com/articles/2014/11/30/china-s-nicaragua-canal...
baltic, electricity and alcohol are sure indicators. dr copper, iron ore, oil, snap cards, disability claims can be added to the list. don't forget all those discouraged wiget assemblers. it all good. ajaw bone the market up and trickle down to the plebs losing ground. oh, almost forgot, but i got to get the tb fired up for idol, have a good one duuuuude...
or isit bro, with a fist jab, whatever ha...
Yes, but who needs real stuff when we have these wonderful stocks and financials literally at the tips of your fingers ? You can now become rich from the comfort of your own screen and keyboard... Transportation is so... last millennium !
Hah hah
That will cut into Somali piracy!
I agree... this problem should clear itself up in the next 20 years or so...
It's contained
"It's contained."
We see what you did there.
Does this mean a housing shortage is imminent for this new America?
Why is it that if something is sent by ship, it's called 'cargo' and if something is sent by car,
it's called a shipment?
Its a relic from the past. Maybe even a barbaric one.
I dunno. Why do you park in a driveway and drive on a parkway?
buy the fucking ship
then fill it with cheap oil...
floating storage
until the oil price rises a few 100 %
BULLISH!! Yeller spoke today.
If Krugman doesn't see his shadow next Monday, it means spring is just around the corner. We're saved.
Whoo-hoo!
Molotov Cocktails for everyone!
Think of the money saved by importers and exporters, all going right into the pockets of consumers to buy iPhones, big screens, and autos. Just like oil.
How long till the ASX200 is on sale??
Why can't TPTB manipulate this index as well? Just curious.
Why bother? Nobody but wonks are looking.
But, but, but, what about the recovery?
RE-RE -RE -CO -VE -RY
Re-re covery?
What a breakthrough!!
Shipping goods virtually, wish I'd thought of it.
This will make stocks skyrocket tomorrow!
Baltic Dry and Dr. Copper---hand in hand "Down" the lane.
BTFWT. Buy The Fucking Wobbly Top.
Dry as a dead dingo's donger.
Is it because of Amazon's drone delivery service?
/s
Interesting .... beat the December '08 663 low by just this much ..
Just another sign of the healthy global economy... move along...
Its ok!
I heard BNN say that all the big money has departed the commodity scene and moved into tech.
Tech will be the savior!
This will surely stimulate world trade, put more money in import/exporters pockets, a tight shipping market was holding the global economy back.
"Soft landing"...
It ONLY took $11 trillion dollars to completely destroy the global middle class, and price discovery.
100x leverage
a quadrillion...
got the job done
The sucking sound of the industrial economy implodng is getting so loud that I'm surprised people don't go deaf from the volume.
I don't know what happened to WTC-7, but I do know the economy is collapsing into its own footprint at freefall speeds.
WTC-7 was an otherwise innocent bystander that happened to get into the way of a Muslim jihad.
I don't find the evidence for that conspiracy theory compelling.
Do worry, it will go much, much lower...
Baltic trades will dry up, so only Northern Europe will trade with each other - small beer.
The future is Southern Europe and North Africa thanks to the Silk Road - Greece, Turkey, Iran, the Stans, China, and maybe Japan - via all the countries the US has seemingly been 'involved with'.
We shall see what happens!
they would make wonderful cruise ship.....
Cheaper to mine, cheaper to manufacture, cheaper to ship. The whole economy is resetting.
test 1
test 2.5.5
That's a big 10-4 Roger affirmative, good buddy. Pinning the needle.
Dont worry, just Russia stopped shipping via Baltic States ports, that is it
not all yet, but at the end of the next month=)
test 3 Who negs test posts? GMAFB bitches. Get a life. /end rant //endtest
Maybe its because nobody knows what the fuck a "test post" is?
How does this fit-into Obozzo's Shadow Has Passed theory? He's such a Dumb Bastard...
He IS the shadow cast over all of us. We know he's there, just out of sight as we turn to catch a glimpse, only discover our pocket has been picked...again.
I guess the FED will have to bail out the ship owners as well
Na, they are all foreign flagged...
So if I wanted to buy a ship, add some accomodation to the hold and turn it into a floating bunker, today would be the day to do it.
Better:
Level 1 casino
Level 2 bars/clubs
Level 3 hookers
Level 4 blow and hookers
Level 5 kingpin's lair
There must be a good reason why no one's ever done this, or someone would have already done this. The State would probably - eheh - torpedo you.
It is absolutely an indicator that the global recovery is a sham - but it's not a pure indication of shipping volume. It's the average cost of shipping (see http://en.wikipedia.org/wiki/Baltic_Dry_Index). The fall in oil price would pull BDI down even if the volume of global trade remained constant.
BDI literally lower than it's been in a lifetime. Wait What was just an infant the last time it was this low. w..t..f...
Damion???
call the priest!!!
Yep, that's pretty low alright. Amazing what happens when the Chinese finally wake up and realize that they just spent 29 Trillion bucks on empty cities and factories. The unintended consequences of a centrally planned economy!
Looks like some of the recent lows, like 1999, 2002, 2009, were good times to buy stocks.
Its always a buying opportunity when interest is near zero and you have access to credit. Just don't buy with your money. That's how the game is played.
No problem, contingency plans already in action to convert to cruise ships to meet expected demand from rising wages...
I don't know about the rest of you mooks , but i'm payin' a visit to the scrap yard tomorrow to beat the rush
Its being surpassed by the DDI (Drone Dry Index)
I think I need only a few more million sweaters in my closet, then I'll feel like a real Patriot Consumer!
Ocean freighters are being sunk by ISIS submarines.....
So much abundance of everything, oil, commodities, cars, clothes, homes, campers etc. etc. but everyone is so poor no one can buy except with loans/debt. The world is capable of producing so much yet everyone is getting poorer except the 1%.
Don't buy anything whatsoever from corporates if you want to be around to see a change, it's coming and you can help x
http://www.slate.com/articles/business/moneybox/2003/10/the_shipping_new...
I can't wait for the day when the Fed has its own Edward Snowden moment.
Fedward Snowman ..?