Posted on 11/20/2015 9:07:55 AM PST by SeekAndFind
The Baltic Dry Shipping Index has been on my mind a lot lately.
.
Another sign of a failed Presidency.
Of Interest?
or failed liberal ideology the world seems so eager to embrace?
Scrap yards are going to be busy. Anything over ten-fifteen years old will go under the torch. Lots of excess capacity out there.
I guess when one runs a website called “The Economic Collapse” there are certain expectations to be met in terms of content.
Here’s my beef: “Global demand for shipping is absolutely collapsing”.
Not true: lease rates on dry bulk carriers may be down, but that’s not the entire shipping market What’s the lease rate on tankers and what percent of the overall shipping market is that?
http://www.koenig-cie.de/en/content/vlcc-200000-320000-tdw
And if the price of oil is down (hardly grounds for an economic collapse to most consumers...), why are the VLCC — very large crude carrier— rates up. The price of the commodity they carry is down, but the daily lease rate is up. How can that be...it’s an economic collapse....
Sanity does not drive our current markets.
I was wondering about the Baltic Dry Shipping Index just yesterday. It came up in casual conversation at the dinner table... ;-)
Just one more thing to weigh on us today.
My 5:30 beer cant come soon enough.
5:30?
That’s not dependent on my time zone is it?
Hopefully that time zone isnt PST.
I dont think I could last having to wait until 9:30!
When I read Baltic Dry I remembered I’m out of Vodka.
a straight YOY comparison is not valid because it does not account for excess capacity in the form of Chinese ships manufactured with the same intelligence the squirrels that have built out their housing.
TEC? The Episcopal Church? Translantic Economic Council?
I read somewhere that at least part of the fall in BDI is due to a massive investment by China in container ships that are empty. So it may be a supply problem as well as a demand problem.
Some of the reports on the oil tankers state that many of the tankers are sitting for days/weeks waiting to be offloaded. China is supposedly at the highest reserve levels ever and simply has no additional storage space, hence the reason why tankers are not being unloaded. If true, tankers are still need to transport oil since the production levels have not decreased and ports of exit only have some much capacity to hold. Check out the following link: Oil glut deepens with 100m barrels at sea
Back in the beginning of the recession, many ships were essentially dry docked because the financing wasn't available to many of the shipping companies. Talk was that if a ship wasn't full and the profitable, it wasn't leaving; so they removed capacity. This time it seems that everyone has run out of answers and is just trying to make money before the shoe finally drops.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.