Baltic Dry Index Collapses Signal Further Worldwide Economic Weakness In 2010
February 2nd, 2010
(BeforeItsNews) – The Baltic Dry Index has collapsed by 40% over the last 10 weeks further signaling economic weakness.
Chart: www.bloomberg.com/apps/cbuilder?ticker1=BDIY%3AIND
The dry bulk shipping vessel orderbook is so massive over the next two years that even huge cancellation estimates would have trouble making it manageable, and thus saving the Baltic Dry Index (a measure of spot rates for bulk shipping).
FTAlphaville highlights that broker Icap expects 1,400 vessels to be delivered in 2010, which equates to 120 vessels per month on average. (Even if in reality they won’t be spread out evenly) How bad is 120 ships per month relative to what the market has had to deal with so far?
Read More: www.businessinsider.com/why-the-baltic-dry-index-will-collapse-again-over-the-next-2-years-2010-1
RELATED STORY: beforeitsnews.com/story/13040/Baltic_Dry_Index_BDI_Railroads_Signaling_Possible_Round_Two_Collapse.html
New York, NY – The Baltic Dry Index as well as US Railroad Freight demand is weakening, possibly signaling round two of market and economic weakness ahead.
Source: Before It’s News
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February 3rd, 2010 at 10:57 am
I don’t know and maybe call me stupid but with statements such as: `The dry bulk shipping vessel orderbook is so massive over the next two years that even huge cancellation estimates would have trouble making it manageable, and thus saving the Baltic Dry Index (a measure of spot rates for bulk shipping).’ and `At no point during 2009 did the rate of delivery exceed 60 vessels in one month – but even if this rate of delivery were maintained throughout 2010 it would still equate to slippage of around 50 per cent. However, in light of the sheer size of the orderbook, and despite high levels of slippage, the market still faces the prospect of continued tonnage growth.’ that these statements translate to a negative indicator for the world economy is baffling to me. Terms like growth, increased tonnage would seem to suggest the opposite. Am I missing something Duh