The World's Best Known Global Shipping Index has Crashed To Its Lowest Level Ever

Tyler Durden's picture




 

Having fallen for 47 of the last 51 days, The Baltic Dry Index (tracking the cost of shipping dry bulk from iron ore to grains) has been collapsing in a well-documented manner by Zero Hedge (though not the mainstream media). With Cramer having told investors of its importance previously, it will be hard to ignore the fact that, as of this morning, the index of global shipping costs has never (ever) been lower at 554. We leave it to readers to decide what they think this means (but we already know what it means for shippers and ship-building companies).

 

Recovery? "Crisis has passed?" You decide...

 

On the back of the total collapse in Chinese imports and exports, is this any surprise?

Of course, stocks know best...

 

Charts: Bloomberg

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Mon, 02/09/2015 - 09:25 | 5761372 dimwitted economist
dimwitted economist's picture

OMFG!!!!!! can obama save us or not?

Mon, 02/09/2015 - 09:26 | 5761379 SickDollar
SickDollar's picture

get ready for WAR BITCHEZ

Mon, 02/09/2015 - 09:32 | 5761408 GetZeeGold
GetZeeGold's picture

 

 

Best Known Global Shipping Index

 

Hold on....it will come to me.

Mon, 02/09/2015 - 09:38 | 5761420 Cognitive Dissonance
Cognitive Dissonance's picture

"Where No Man Has Gone Before"

Trek fans unite.

Mon, 02/09/2015 - 09:43 | 5761438 Latina Lover
Latina Lover's picture

The Baltic Dry Index is one of the few economic series that cannot be directly manipulated by the Feds, nor can banksters write derivatives against it  (no trading market). So it does tell us that all is not well in Obamaland, and globally.

Mon, 02/09/2015 - 09:47 | 5761457 semperfi
semperfi's picture

you underestimate the power of the dark side

Mon, 02/09/2015 - 09:52 | 5761478 bbq on whitehou...
bbq on whitehouse lawn's picture

The darkside underestimates the power of nature.

Mon, 02/09/2015 - 10:18 | 5761600 wallstreetapost...
wallstreetaposteriori's picture

Strongest economy EVER!

Mon, 02/09/2015 - 10:20 | 5761605 Soul Glow
Soul Glow's picture

EVAR!

Mon, 02/09/2015 - 10:56 | 5761766 Publicus
Publicus's picture

Technological progress is lowering the price of shipping. No big deal.

Mon, 02/09/2015 - 13:37 | 5762479 Ying-Yang
Ying-Yang's picture

Heh, the FED could help the Baltic Dry index....

They are said to be considering QE Astroglide.

If you have problems with Baltic lubrication, you’re not alone! Many factors, including fracking, central bank rate hikes, administration interference, and geopolitical stress can affect shipping production.

Life is too short for high shipping costs. If you’re experiencing Baltic dryness, the FED QE lubricants can help make shipping wetter, more profitable and more satisfying.

Mon, 02/09/2015 - 14:41 | 5762829 Automatic Choke
Automatic Choke's picture

lowest ever?  new record?  must be global warming.

Mon, 02/09/2015 - 15:18 | 5762995 A Nanny Moose
A Nanny Moose's picture

Bailout plan. Move everybody into subprime cargo containers. Teh Goldmans can finance the LBO of container ship owners, by a big cruise line..preferably Carnival.

Vacations will never be the same.

Mon, 02/09/2015 - 09:58 | 5761505 Headbanger
Headbanger's picture

Nature underestimates the darkside of power.

 

Mon, 02/09/2015 - 10:16 | 5761586 pelican
pelican's picture

What was the index during 2008 at its finest? 

Mon, 02/09/2015 - 09:55 | 5761471 Scarlett
Scarlett's picture

Precisely.  It also tells us that the crash in crude isn't an attack on Putin.  

 

From Dead Malls in USSA to Ghost Cities in China, it's the curse of malinvestment.  

 

Now, the malinvestment has become clear, there has been gargantuan "demand destruction", and the global depression is well on its way.  

 

With more EZ money hanging around and less goods flowing...  the consequence is left as an exercise for the reader.

Mon, 02/09/2015 - 10:03 | 5761532 spinone
spinone's picture

So the banks and corporations have access to easy money, but the plebs don't.  Demand destruction and deflation among the plebs leads to less consumer goods being imported, but corporations have cheap credit so they keep investing in production.   Fewer dollars abroad leads exporters to sell US Treasuries in order to debase their currencies and keep their export prices low or fund the shortfall of low oil prices.  US sells treasuries to deficit spend and pay interest on the debt.  Too many treasuries on the market means that...

Mon, 02/09/2015 - 10:18 | 5761598 cornfritter
cornfritter's picture

"but corporations have cheap credit so they keep investing in production..."  

some of that, but a good bit of just pocketing the money (bonuses and increased salaries and such) since their buddies rig the graphs on wall street showing how well the copmpany's stocks are performing... just blatant theft, chalked up as public debt.. same as it ever was 

tightening the shackles 'round grandma's neck.... "but we earned it, we studied finance and economics.."

Mon, 02/09/2015 - 10:40 | 5761694 SWRichmond
SWRichmond's picture

What's the point of getting bailed out if you put the money at risk?  They're all using it to "cash out".

Mon, 02/09/2015 - 15:21 | 5763055 A Nanny Moose
A Nanny Moose's picture

tightening the shackles 'round grandkids necks

FIFY. Granny only has another 20 years... supplied by public debt.

Mon, 02/09/2015 - 19:35 | 5764076 Johnny Fiat and...
Johnny Fiat and The Contangos's picture

this is going down long before it gets to our grandkids.  jus sayin'...

Mon, 02/09/2015 - 10:24 | 5761616 investor31
investor31's picture

2 wise you are 2 wise you B I see you are 2 wse for ...

Excellent observation.

Mon, 02/09/2015 - 10:18 | 5761602 mvsjcl
mvsjcl's picture

So the current state of the BDI "... tells us that the crash in crude isn't an attack on Putin."

 

I'm not saying that it is or isn't, but how do you arrive at that conclusion? 

Mon, 02/09/2015 - 10:50 | 5761738 SelfGov
SelfGov's picture

If crude oil were dropping while everything else hummed along nicely then we could start mentioning the oil weapon.

The crude crash is all about a demand crash over all.

Mon, 02/09/2015 - 10:39 | 5761688 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Not as much malinvestment as a genuine lack of capital expenditure across the board. The United States' infrastructure, for example, borders on being Third World-level at this point.

Mon, 02/09/2015 - 11:10 | 5761824 pods
pods's picture

The US government is just planning ahead.  

Hell, if we are going to be Third World, might as well do it right?

pods

Mon, 02/09/2015 - 12:44 | 5762265 sun tzu
sun tzu's picture

My bet is you have never been to a third world country

Mon, 02/09/2015 - 14:26 | 5762745 EINSILVERGUY
EINSILVERGUY's picture

I have. I live in Houston.  its now little Mexico

Mon, 02/09/2015 - 12:28 | 5762166 mtl4
mtl4's picture

TPTB could easily have seen that goods demand was falling and would impact the commodity market at some point thereby using it to their advantage against the destruction of the petrodollar but saying it was entirely market driven doesn't explain why oil producers didn't slow production at all to slow the drop (they need to get something from the deal).  Then we continue to see oil prices bottom out and rally while demand is continuing to drop again a big disconnect there too.  Sounds like we have a perfect storm brewing now (political interests coupled with cratering market demand) and it should be here just in time for the next president to deal with.

Mon, 02/09/2015 - 13:33 | 5762463 malek
malek's picture

 It also tells us that the crash in crude isn't an attack on Putin. 

And that somehow includes the fact that at the same time the Saudis aren't cutting down on production?

Mon, 02/09/2015 - 10:06 | 5761550 RadioactiveRant
RadioactiveRant's picture

Surely a privately produced index is easy to manipulate, just got to take the right person out to lunch. Data in white is hard to spot on most spreadsheets.

Mon, 02/09/2015 - 10:12 | 5761577 Goldbugger
Goldbugger's picture

You are abolutely correct and thei index portends a global collapse right before it occurs. Just like it did in 2008.

Mon, 02/09/2015 - 10:39 | 5761683 Theosebes Goodfellow
Theosebes Goodfellow's picture

~"The Baltic Dry Index is one of the few economic series that cannot be directly manipulated by the Feds, nor can banksters write derivatives against it  (no trading market)"~

And do you remember when you thought it was bad at 750? Five-Five-Four, bitchez. So much for central government-planned economies, eh?

Mon, 02/09/2015 - 09:43 | 5761439 cnmcdee
Mon, 02/09/2015 - 09:44 | 5761441 Pladizow
Pladizow's picture

Back on the previous low, didn't something follow in the stock market?

Mon, 02/09/2015 - 11:45 | 5761951 fockewulf190
fockewulf190's picture

Wolf of Wall Street popped up after the 87 fire in the hole.. The next creature to emerge from the upcoming ashes of Vallhalla Street will probably be oriental looking and packing a shitload of gold.

Tue, 02/10/2015 - 10:36 | 5766052 MontgomeryScott
MontgomeryScott's picture

@ cog:

"Where No Man Has Gone Before"

Trek fans unite.

Analysis, Mr. Spock?

It appears that we are trapped in a general economic dampening field that is sapping the energy from the warp engines of the economy, Captain.

Mr. Scott, what can you do about it?

Well, Captain, perhaps me and Mr. Bernanke COULD rig up some type of makeshift printing press down in engineering...

Will this 'printing press' cause the B.D.I. to rise, Mr. Spock?

Negative, Captain. The inflation effect would only be temporary. Without a gold or silver backing...

What about it, Scotty?

The Vulcan's right. I canna change the Laws of Economics...

Mon, 02/09/2015 - 09:38 | 5761424 Oracle 911
Oracle 911's picture

Why the Chinese exports and imports are down?

Why nobody asks this important question?

Mon, 02/09/2015 - 09:42 | 5761434 EscapeKey
EscapeKey's picture

The important question surely is "why weren't the previous numbers revised down, making the current turn positive"?

Mon, 02/09/2015 - 09:56 | 5761474 foodstampbarry
foodstampbarry's picture

Steve LIESman: "This just doesn't make sense, the fundamentals are strong"

Mon, 02/09/2015 - 09:36 | 5761414 TheReplacement
TheReplacement's picture

Gotta put sumptin in dem ships.  Mightnswell be dem troops.

Mon, 02/09/2015 - 10:25 | 5761620 kridkrid
kridkrid's picture

When goods stop crossing borders, troops do.

Mon, 02/09/2015 - 15:19 | 5763041 Mentaliusanything
Mentaliusanything's picture

Negative Rates... Sarc tag please (as he cleans up around the face and computer)

Mon, 02/09/2015 - 10:05 | 5761546 lim
lim's picture

war is hell

but so is austerity

Mon, 02/09/2015 - 10:29 | 5761641 investor31
investor31's picture

War isn't hell, war is war

How do you figure ?

Easy Tell me who goes to hell ?

Sinners, I believe.

Exactly, there are no innocent bystanders in hell...

 

MASH

Mon, 02/09/2015 - 11:59 | 5762025 noben
noben's picture

Keep Calm. It was only due to "a shipyard worker* dropping a cigarette".

* From Donetsk

"We ship wrecked some folks"

Mon, 02/09/2015 - 09:27 | 5761383 Silver Short Seller
Silver Short Seller's picture

Demand for commodities is low despite the increase in liquidity by central banks around the world. So much for that QE = inflation theory.

Mon, 02/09/2015 - 09:38 | 5761421 cossack55
cossack55's picture

Why not just use the ships to haul various currencies around the world.  Stop the madness of computer digits representing money and print the real thing.  That should fill at least 10 Ultra Large Container ships in just USD alone.

Mon, 02/09/2015 - 10:27 | 5761631 kridkrid
kridkrid's picture

Inflation in the things you need, deflation in the things you own, to include your labor.

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