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Baltic Dry Plunges 42% More Than Seasonal Norm To Start The Year
Whether it is an over-abundance of ships (mis-allocation of capital) or a slowing global growth story (aggregate demand), the crash in the Baltic Dry Index has been significant to say the least. Seasonals are prevalent (and Chinese New Year impacts) but to try and clean up that perspective, we find that so far this year the Baltic Dry has fallen 42% more than its seasonal normal and is down by more than 50% since 12/30/11. Nothing to see here move along.
and on a log scale, this is indeed an impressive drop...
Chart: Bloomberg
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Get physical before the physical is gone.
Lowa de limbo steeck -- how low can you go, mon?
http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100014380/china%E2%80%99s-very-mysterious-data/
"The Baltic Dry Index measuring freight rates for ores, grains, and bulk goods, has fallen 44pc over the last year. Kasper Moller from Maersk in Beijing said weak Chinese demand for iron ore was the key culprit."
Hmm, weak demand for iron ore - China, Australia and Brazil to crash?
the graph has been made to look a bit more impressive than it actually is the graph's scale is stretched on the y-axis as we go lower especially as we go below 3000.
but 42% in 25 days is still fucked up no matter what the scale.