WOW, Baltic Dry Index gonig straight down

[General of Darkness]

Well, I think their stuff tends to have a cycle, but not this kind of a cycle.


http://www.bloomberg.com/apps/quote?ticker=BDIY:IND


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Last Update: Jan 13

-4.706%
VALUE: 1,053.000 USD

BALTIC DRY INDEX (BDIY:IND)


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Snapshot


Summary
One-Year Chart INTERACTIVE CHART (http://www.bloomberg.com/apps/quote?ticker=BDIY:IND#chart) Value 1,053.00 http://www.bloomberg.com/apps/chart?h=200&w=280&range=1y&type=gp_line&cfg=BQuoteComp_10.xml&ticks=BDIY%3AIND&img=png Change -52.000 (-4.706%) Open 1,053.00 High 1,053.00 Low 1,053.00

Interactive Chart



Unless indicated otherwise: intraday data is at least 15 minutes delayed; mutual fund NAVs are updated at the close of every market day; all prices are in the local currency; Time is ET.

[TheNocturnalEgyptian]

Doublespeak - "This only creates more room to grow."

No, seriously though, that's straight down.

[midnight rambler]

Doublespeak - "This only creates more room to grow."

No, seriously though, that's straight down.

Look at the bright side - it's really no lower than it was 10 months ago, it has no place to go but up! /sarc

[Buddha]

+ Add Security to your Watch List (http://www.bloomberg.com/apps/quote?ticker=BDIY:IND#)

It's on my watch list alright.

[Neuro]

Twas at 1400 just two days ago. World trade just stopped after Christmas I guess...

[Twisted Titan]

That will be the straw that break the camels back

The day the shippers demand payment BEFORE they ship and will no longer accept CODs or a new financial instrument ..

That will be the end of the world as we know it.

[osoab]

http://investmenttools.com/images/wfut/crb/bdi.gif


http://investmenttools.com/futures/bdi_baltic_dry_index.htm

[Cebu_4_2]

My goodness I rode some bad waves but that would pretty much ruin my day.

[mick silver]

what go up will come down ... tag

[Spectrism]

The increase in 2010 was just a bump from stimulus money letting the commoners buy cheap crap from China.

The next bump in shipping will be military hardware going to new war fronts... until the big players begin to use subs & missiles.

[TheNocturnalEgyptian]

Continues down:

http://www.bloomberg.com/apps/chart?h=200&w=280&range=1y&type=gp_line&cfg=BQuoteComp_10.xml&ticks=BDIY%3AIND&img=png

[midnight rambler]

Continues down:

http://www.bloomberg.com/apps/chart?h=200&w=280&range=1y&type=gp_line&cfg=BQuoteComp_10.xml&ticks=BDIY%3AIND&img=png

Relax! It's still no lower than it early last year. /sarc

[osoab]

Baltic Dry Index Slumps To Lowest Since January 2009 (http://www.zerohedge.com/news/baltic-dry-index-slumps-lowest-january-2009)

[croc]

flew past singapore a month ago, huge number of ships anchored up, cme back yesterday, amazing sight.

[Horn]

http://www.busyboo.com/wp-content/uploads/2009/01/container-homes-hybrid.jpg

[mick silver]

is that your place horn

[Horn]

is that your place horn

No, but for some strange reason, everyone I meet would like to live in one... :0

Better living through affordability, I guess.

[Neuro]

973 right now. Stock market celebrate the collapse of world trade by going up to within 10% of all time high... ???

I guess the reason is not lack of money, stock investors have more than plenty, consuming masses has none left...

Living in a 40 feet container makes sense if you are in the latter category...

[beefsteak]

Not having paid much attention to this particular TA chart squiggle, this thread got my attention late last much. Thanks to the GS'er OP for starting it.

Just got a headsup on an explanation / interpretation of the squiggles courtesy Greg Hunter over on JSMineset, posted Monday 1/30/2012.

============================

Baltic Dry Index Signals Renewed Market Collapse

Monday, 30 January 2012 04:40 Brandon Smith


http://www.alt-market.com/images/stories/sinkingcargo2.jpg
Much has been said about the Baltic Dry Index over the course of the last four years, especially in light of the credit crisis and the effects it has had on the frequency of global shipping. Importing and exporting has never been quite the same since 2008, and this change is made most obvious through one of the few statistical measures left in the world that is not subject to direct manipulation by international corporate interests; the BDI. Today, the BDI is on the verge of making headlines once again, being that it is plummeting like a wingless 747 into the swampy mire of what I believe will soon be historical lows.

The problem with the BDI is that it is little understood and often dismissed by less thoughtful economic analysts as a “volatile index” that is too “sensitive” to be used as a realistic indicator of future trends. What these analysts consistently seem to ignore is that regardless of their narrow opinion, the BDI has been proven to lead economic derision in the market movements of the past. That is to say, the BDI has been volatile exactly BECAUSE markets have been volatile and unstable, and is a far more accurate thermometer than those that most mainstream economists currently rely on. If only they would look back at the numbers further than one year ago, they might see their own folly more clearly.

Introduced in 1985, the Baltic Dry Index first and foremost is a measure of the global shipping rates of dry bulk goods, mostly consisting of vital raw materials used in the creation of other products. However, it is also a measure of demand for said materials in comparison to previous months and years. This is where we get into the predictive nature of the BDI…

In late 1986, for instance, the BDI fell to its lowest level on record, then, began a slow crawl towards moderate recovery, just before the Black Monday crash of 1987.

http://www.alt-market.com/images/stories/baltic%20dry%20index2.gif

Coincidence? Not a chance. From 2001 to 2002, a similar sharp collapse in the BDI preceded a progressive drop in the Dow of around 4000 points, ending in a highly suspect (Fed engineered) illegitimate recovery. In 2008, the index fell to near record lows once again just before the derivatives and credit crisis hit stocks full force. To imply that the BDI is not a useful measure of future economic trends seems like an astonishingly ignorant proposition when one examines its very predictable behavior just before major financial downturns.

This is not to suggest that the BDI can be used as a way to play the stock market from day to day, or often even month to month. MSM analysts rarely look further than the next quarter when considering any financial issue, and that is why they don’t understand the BDI. If an index cannot be used by daytraders to make a quick buck in a short afternoon, then why bother with it at all, right? The BDI is not an accurate measure of the daily market gamble. It is, though, an accurate measure of where markets are headed in the long run and under extreme circumstances.

Over the course of the past month, the BDI has fallen around 65% from above 1600 to 726. Mainstream economists argue that the BDI’s fall in 2008 was a much higher percentage, and thus, a 65% drop is nothing to worry about. They fail to mention that shipping rates never recovered from the 2008 collapse, and have hovered in a sickly manner near lows reached during the initial credit bubble burst. By their logic, if the BDI was at 2, and fell to 1, this 50% drop should be shrugged off as inconsequential because it is not a substantial percentage of decline when compared to that which occurred in 2008, even though the index is standing at rock bottom. Yes, the useful idiots strike again…

Looking at the rate and the speed of decline this past month, it’s hard to argue that the current 65% drop is meaningless:

http://www.alt-market.com/images/stories/bdi4.gif

Another subversive argument against the BDI is the suggestion that it is not the demand for raw materials that is in decline, but the number of shipping vessels out of use that is growing. A smart person might suggest that these two problems are mutually connected. An MSM pundit would not.

In 2008, many ships were left to wallow in port without cargo, but this was due in large part to two circumstances. First, demand had fallen so much that too many ships were left to carry too little raw materials. Second, credit markets had sunk so intensely that many ships could not find trade financing necessary to take on cargo. In either case, the BDI still falls, and in either case, it still signals economic danger. The only way that the BDI could signal a major decline in shipping demand artificially or inaccurately is if a considerable number of ships under construction were suddenly released onto the market while there is no demand for them. There have been no mass increases or extreme changes in cargo fleets this past month, or at all since 2008, which means, the BDI’s decline has NOTHING to do with the number of ships in operation, and everything to do with decline in global demand.

What is the bottom line? The stark decline in the BDI today should be taken very seriously. Most similar declines have occurred right before or in tandem with economic instability and stock market upheaval. All the average person need do is look around themselves, and they will find a European Union in the midst of detrimental credit downgrades and on the verge of dissolving. They will find the U.S. on the brink of yet another national debt battle and hostage to a private Federal Reserve which has announced the possibility of a third QE stimulus package which will likely be the last before foreign creditors begin dumping our treasuries and our currency in protest. They will find BRIC and ASEAN nations moving quietly into multiple bilateral trade agreements which cut out the use of the dollar as a world reserve completely. Is it any wonder that the Baltic Dry Index is in such steep deterioration?

Along with this decline in global demand is tied another trend which many traditional deflationists and Keynesians find bewildering; inflation in commodities. Ultimately, the BDI is valuable because it shows an extreme faltering in the demand for typical industrial materials and bulk items, which allows us to contrast the increase in the prices of necessities. Global demand is waning, yet prices are holding at considerably high levels or are rising (a blatant sign of monetary devaluation). Indeed, the most practical conclusion would be that the monster of stagflation has been brought to life through the dark alchemy of criminal debt creation and uncontrolled fiat stimulus. Without the BDI, such disaster would be much more difficult to foresee, and far more shocking when its full weight finally falls upon us. It must be watched with care and vigilance...


You can contact Brandon Smith at: brandon@alt-market.com

[gunDriller]

but ... "shipping doesn't matter because we have the Internet."

the New Economy.

shipping is so - 20th Century.

Facebook just WENT PUBLIC.

the economy is BOOMing. /sarc.


... the sound it makes when it explodes ;)

the collapse in the BDI is more significant when one considers the population growth.

we got 7 Billion people now, and ships are just sitting.

given the price of steel, i wouldn't be surprised to see some of those containers heading for the blast furnace.


a collapse in world trade when the population numbers are booming ?

like i said, "it's the Internet man, the New Economy" / sarc.

[Spectrism]

1929- Stock market crash
2008- Stock market.... ooops... not allowed.... PPT: Buy stocks!

1931- Bank failures
2008- Bank... TARP! Federal reserve pumps $17trillion into banking system!

1932- Unemployment at 22%+
2012- Unemployment at 9% if we don't count those out of work. Welfare unmentionable.

1933- Bread lines and soup kitchens feeding lines of starving Americans.
2012- 45 million (and increasing) Amerikans on food stamps.

Modern issues-
National debt officially at $15trillion. Unfunded liablilties put us over $100trillion. Solution: ignore it.
BDI crashing. Solution: ignore it.
Liberties being destroyed. Solution: more government controls.

[mick silver]

back up for more looks

[Neuro]

Bloody hell it's down to 647! This must be the lowest since ages, unless it was lower the last couple of days!

[Gaillo]

Market crash imminent? I'm thinking... yes.
March of this year is going to be VERY interesting, in the Chinese curse sort of way! :o

[JohnQPublic]

The Ides of March?

[Neuro]

Market crash imminent? I'm thinking... yes.
March of this year is going to be VERY interesting, in the Chinese curse sort of way! :o

Yes I think so. I would like to see a DOW/BDI chart... The Baltic dry index is referred to as the canary in the coal mine, and it really doesn't look very good right now...

[Spectrism]

In my business we are seeing a very slow quarter- similar to 2009. Insiders think it is temporary with more jobs coming down the road. I have seen those kinds of jobs get cancelled in a day. For a very protected industry, we are starting to see tense days again.

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Shipping Rates Go... Negative (http://www.zerohedge.com/news/shipping-rates-go-negative)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 02/06/2012 - 09:45 Baltic Dry (http://www.zerohedge.com/taxonomy/term/309) default (http://www.zerohedge.com/taxonomy/term/7) Following the endless collapse in the Baltic Dry, it was only a matter of time before the shipping industry one-upped the Chairsatan, and was the first to introduce, dum dum dum, negative rates. That's right: you are now paid to hire a ship.


GLENCORE HIRES SHIP AT MINUS $2,000 A DAY, GMI SAYS
GMI TO CONTRIBUTE $2,000 A DAY TO GLENCORE'S FUEL COSTS
GLOBAL MARITIME'S U.K. MD STEVE RODLEY CONFIRMS DEAL BY PHONE

Why is this happening? Perhaps because ships have to be kept seaworthy and in motion or else they become scrappage in as little time as 3 months. Think sharks. Needless to say, this will play havoc with shipping company (and affiliated entities') liquidity, as the biggest default wave in the history of the industry is about to be unleashed and tens if not hundreds of billions of European secured loans are about to be "impaired."

[Neuro]

Yes ships are BIG investments. This can get as ugly as the Greek government default!

[gunDriller]

Yes ships are BIG investments. This can get as ugly as the Greek government default!

yet i have a feeling that Greek shipping tycoons like Aristotle Onassis' family will make out just fine.

[Neuro]

yet i have a feeling that Greek shipping tycoons like Aristotle Onassis' family will make out just fine.
I am not particularly worried about their well being. May end up a few billions short here and there, but they have enough stuffed away from Greece and shipping to start over...