Baltic Dry Free Fall Continues: 4%+ Drop For 3rd Consecutive Day, At Lowest Since April 2009

Either someone in China is pumping out 100 capesize ships every single day, and doing their best to push charter rates to just below zero, or, gasp, transpacific trade is really falling off a cliff (i.e., Chinese inventory accumulation has been put on hold). Of course, if it is the second, we will know in February when China reports its January trade surplus (and the US respectively reports its trade deficit). Should the gross imports and exports number plunge, it may confirm that the BDIY which is only mentioned by the MSM when rising, and ignored when plunging, may actually be relevant. And speaking of plunging, today it dropped for the third consecutive day by more than 4%, hitting 1,544, a 4.8% drop overnight, and the lowest number since April 2009.