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Baltic Dry Crashes To New Record Low As China "Demand Is Collapsing"
Despite a brief dead-cat-bounce late November, which Jim Cramer heralded as evidence of stabilization in China, the world's best known freight index has collapsed to new all-time record lows this morning. Amid a persistent glut of ships and ongoing concerns about Chinese steel imports, The Baltic Dry has tumbled to 471 - the lowest level in at least 30 years.
Worst. Ever.
As Bloomberg adds, China, which makes about half the world’s steel, is on track for the biggest drop in output for more than two decades, according to data compiled by Bloomberg Intelligence...
Owners are reeling as China’s combined seaborne imports of iron ore and coal -- commodities that helped fuel a manufacturing boom -- record the first annual declines in at least a decade. While demand next year may be a little better, slower-than-anticipated growth in 2015 has led to almost perpetual disappointment for rates, after analysts’ predictions at the end of 2014 for a rebound proved wrong.
“It doesn’t help that Chinese steel production is about to see the most dramatic decline to the lowest in 20 years,” said Herman Hildan, a shipping-equity analyst at Clarksons Platou Securities in Oslo. “Demand growth is collapsing.”
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Sounds like a perfect time to hike rates and exaggerate the deflationary tsunami and monetary outflows from the world's potentially growing economies.
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Baltic Dry is a steel at these levels.
When can Main Street hope to see this reflected in the price of plastic pumpkins from China?
That is done through the Shanhai rate, not the Baltic Dry. [Seriously, look it up.]
Never! However, there will be increased demand for cocaine and prostitutes in New York.
This is bullish, right?
Peak Plastic Crap. Moar Woar is the only answer.
Quick Vlad, first strike.
War, huh, what's it good for?
Plenty of money to be made
supplying the Army with the tool of the trade
Those shipping rates look like they hit an iceberg. Is Captain Yellen going down with the ship? Or are we going to keep the dance band playing just a while longer?
Doesnt matter. The FEDERAL RESERVE will raise rates and the DOW will +400 points by the end of the day. This will become the greatest bull market in the history of mankind. The FEDERAL RESERVE will make sure of it.
Gartman must have gone long BDIY
blank
With a billion newly created middle class chinese who can consume all the shit they make, who needs to ship shit across oceans anymore?
America doesnt make anything except dollars and that can be digitized..... lol
I doubt this is the case as they are talking of China's iron ore and coal imports here. There are only so many ghost towns you can build before the interest, tax and maintenance costs become overwhelming.
A billion of them? Not true.
And do you know how they define middle class these days ? It's someone who holds two times the average annual income of their country in assets of any kind.
One "middle class" Chinese guy does not equate to one "middle class" American.
So what? Paper promises and financial "products" do not require such barbaric relics (like ships) to be sent all over the world.
Global Weimar motherfuckers!
Quite a "Brave New World" ain't it.....
Bernanke hints at NIRP......its coming. http://www.marketwatch.com/story/bernanke-says-fed-likely-to-add-negativ...
Count on it!
NIRP - ON!
So when do we get our "free" money!
Fucking lunatics or criminals. I lean towards criminals.
Cannot demand anything when no dollars to buy stuff I don't need to impress people I could care less about. Just sayin.
What are you saying? You don't have the largest plastic christmas scene on your block?
Why, that is plain Unmerkin!
What isn't going negative these days......hope.
Sign HOP.
America has plastic Chinese junk in their homes, garages, basements, and landfills... How much more does one need?
Their only hope is some new 'killer app' that renders current electronic devices obsolete!
MOAR mini-storage units!! MOAR MOAR!!
Wow. That's a recessionary signal right there. As go the container ships so go the factories.
Considering China has been shipping cut-rate, subsidized steel in US and European markets for over a year. Had to go by ship but now those markets are dead. Thank you China for all your layoffs here.
Maybe they should convert their dry ships to wet ships and start selling oil storage.
Interesting shipping statistics. Bulk (BDI) ship tonnage has acutally declined over the last few years after a peak in 2011 and 2012 and scrapping rates are very high with the average age of a ship at just 9 years.
So those who claim these historic lows are due to increased supply of available ships are only partially correct. The ships are available because people ain't shipping as much.
http://unctad.org/en/PublicationsLibrary/rmt2015_en.pdf
Baltic Dry Index
The best economic indicator you've never heard of.
By Daniel Grosshttp://primary.slate.com/articles/business/moneybox/2003/10/the_shipping...
Bunker fuel now close to moving into the last 60s generation western electricity plants....
Problem is - only a few remaining.
https://m.youtube.com/watch?v=hvIHjRP5r3o
Jerry, it's Frank Costanza! Mr. Steinbrenner's here, George is dead, call me back!
China demand is collapsing? Well, perhaps, but it seems to me that the demand is tanking here too. And since a lot of what China is exporting is stuff needed to make other things, maybe it is lack of demand HERE that is crashing China's exports...
Demand for the U.S. largest export component - empty cargo containers - has collapsed.
Jim Cramer oldie and goodie:
Jim Cramer - Wake up, Bernacke!
Everything's awesome. Time to hike rates.
Long U-Boats.
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But didn't they build a whack o' boats?
What is the amount of cargo being shipped?
If there are 10 guys and 9 ships, the shippers set the price.
If there are 10 ships and 9 guys…
•?•
V-V
Think of the money to be made if you filled those empty ships with clean air and sent them to China! A guy could charge $100 a head for Chinese to step inside for a breath of fresh air!
I want to see my helicpter money everything will be alright. Dont worry be happy.